Mundy: Beauty is in the eye of the beholder

A client recently highlighted to me the current similarity of the fund managers he speaks to.

Each one is on buying “good companies, with strong market shares, durable recurring earnings and high barriers to entry, particularly focused on emerging economies for their growth prospects, generating strong cashflow, run by an able management team and available at an attractive price”. He asked me to find the weakness in that argument. While hardly in the Challenge Anneka category, it was definitely a task that caught my imagination. My first thought was that such perfect stocks are never available at a truly attractive price. As beauty is in the eye of the beholder, an ‘attractive p...