Tune in anytime: iTunes – Spotify – Castbox – YouTube
On this episode:
Stephen Arnold joined Owen Raszkiewicz on The Australian Investors Podcast for a talk about life, money and business.
Stephen has a wealth of experience in global markets at top tier firms, here in Austalia and in London. He managed more than $1 billion in Sydney for Evans & Partners and has since founded Aoris Investment Management.
Aoris’ tagline is quality first value investing. I think it’s an apt phrase since it encapsulates so much of what I like about Stephen’s approach.
With a portfolio of no more than 15 stocks, Stephen places significant emphasis on knowing where his circle of competence lies and how to measure the change in a company’s competitive advantage or moat. As you’ll discover the depth of his team’s research is impressive, to say the least.
When I first read about and met Stephen years ago I was struck by his unique and conservative approach to valuation, his rules for filtering companies and industries, and the purposeful portfolio construction approach he created.
Though Stephen and I spend quite some time talking about more in-depth investment topics like valuation I think there is something for everyone in this hour-long conversation. We hope you enjoy it!
- 1:30 – Intro to Stephen and his early career
- 10:00 – Banking crises and lessons from analysing banks during the Global Financial Crisis (GFC)
- 17:00 – Stephen’s elevator pitch: What Aoris does (in 30 seconds)
- 20:00 – Why the “direction of travel” in competitive advantages is so important to Stepen (and how to measure it)
- 26:00 – Why technical selling relationships are best
- 32:00 – How to find stocks and companies with sticky customer bases and wide moats
- 34:00 – The 3 things Stephen looks for in companies with high-value-to-cost ratios
- 38:00 – How to assess management
- 42:00 – How and why Stephen values stocks the way he does
- 47:00 – How Stephen removes optimism bias, sensitivity and risks to choosing a discount rates
- 48:30 – Investing is a business of judgements
- 51:00 – What is internal diversification and how does it help build a portfolio?
Learn more about Stephen:
- Take Owen’s investing free valuation course!
- Click here for - Owen's free cloud stocks investment report
- Click here for - Owen's investment research (Rask Invest)
- Contact Owen: If you have any feedback or advice to share with Owen, you can reach him by clicking here.
- New to Rask? Create a free Rask Account
- Rask Media: get the latest ASX news and stories
The information on this website and in our podcasts is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.