Buy undervalued companies, hold them for a long time
He gives us two great examples to illustrate his point. Telstra (ASX:TLS) & Downer EDI (ASX:DOW). He carefully explains how these companies make their money, their position in the market and how they can keep costs under control. Important information about how Kyle values his stock picks. Remember, this is in no way a recommendation to buy these shares and you should consult professional advice before doing anything.
The biggest decision you make when you invest in a company is the price you pay for that company
It is worthwhile focusing on statements that at face value may seem obvious. When you dig deeper into these statements they can reveal the many layers of how the market values a particular stock and the hidden opportunities that may be available.
Kyle gives us a great analogy. When you buy a property you do a lot of research into what you think it's worth. The price you pay determines all of the numbers into the future representing your capital gain and your income. It's the same when you buy a share. The price you pay determines everything about that investment.
Two stock operators looking for value and conviction
Below is Kyle's presentation at the ASX Investor Day. If you enjoyed my chat with Kyle you can gain further insights here. For further information on Firetrail Investments, here's a link to their website.
Shares for Beginners is for information and educational purposes only. It isn’t financial advice, and you shouldn’t buy or sell any investments based on what you’ve heard here. Any opinion or commentary is the view of the speaker only not Shares for Beginners. This podcast doesn’t replace professional advice regarding your personal financial needs, circumstances or current situation.
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