Global markets were generally lower on Friday although the US Dow Jones index managed to touch a new high. US quarterly profit reports continue to dominate news flow especially as investors have been counting on earnings to support the relatively high valuations for equities. We are now about halfway through reporting season, and S&P 500 companies are on track to increase earnings by 10.8 per cent, according to Thomson Reuters estimates.
Closer to home, local earnings season kicks off across Australia & New Zealand. In Australia analysts are expecting another strong earnings season, primarily reflecting a rebound after two tough fiscal years for the Resources sector. In NZ, earnings will be very interesting to watch given the market is at all-time highs and generally looks expensive in terms of valuations.
We held our investor day in Auckland yesterday with a number of high quality speakers, including a global fund manager, Marcus Driller from Fisher & Paykel Healthcare, and Tim Brown from Infratil. Overall it was a very informative day and we highlight a few key points from Tim’s presentation below.
Stock in Focus: Infratil (IFT.NZ / IFT.AX)
Tim Brown (Infratil) at Investor Day, Auckland
Tim highlighted IFT’s business model and historic track record of performance, generating an impressive 16.8% per annum over the last 23 years (more then Warren Buffet’s Berkshire Hathaway over that period). IFT is an investment company, and the shares continue to trade at a significant discount to IFT’s NTA (Net Total Assets).
IFT are long term investors, and invest in long term themes. Several of these themes are consistent with ’s views such as Tourism, Healthcare, and the explosion of Data. To reflect their views IFT have holdings in the likes of Wellington Airport, Retire Australia, and Canberra Data Centres.
We are currently BUY rated on IFT as a medium-term investment holding, sign up for a FREE TRIAL membership below to read our full reports on Infratil.
