The stock of a corporation is all of the shares into which ownership of the corporation is divided. The shares are commonly known as “stocks” or voting power, often dividing these up in proportion to the amount of money each stockholder has invested. Not all stock is necessarily equal, as certain classes of stock may be issued without voting rights, with enhanced voting rights, or with a certain priority to receive profits or liquidation proceeds before or after other classes of shareholders.
Many people think about global equity investing as either a diversifying investment plan or an opportunity to achieve better returns. By targeting the fastest-growing regions such as China and India, some investors assume they can make huge returns on their investments.
By targeting the most famous companies, the likes of Amazon, Google and Apple – other investors assume they can obtain truly blue-chip exposure. Yet, at the heart of this decision is an ambition to achieve better outcomes than they can otherwise obtain by investing indepedently.
Therefore, global equities are better thought about as a process of filling portfolios with assets that offer attractive reward for risk. By extension, this requires one to have conviction over the best assets as well as reasoned analysis to support that conviction.
It is important to have a clear and consistent analytical framework that enables investors to make a holistic assessment of these opportunities. As future returns are a function of both the cash flow generated by an asset and the price paid for that cash flow, it is essential that any assessment incorporates both these factors together including the future risks to that cash flow.
The central idea is to obtain an independent view of reward for risk among global equities. We have a clear understanding of valuations, including what each asset can be expected to deliver over their desired time horizon, for instance: over 10-years or more. We understand valuations and how well the asset ranks compared to other markets.
We identify whether the market’s current expectations, positioning and sentiment are supportive or contrary to the herd. We consider out-of-favor assets, since the greatest opportunities often lie in unloved industries or at companies that have recently had bad news but remain fundamentally strong. We clearly understand the range of possible scenarios, as well as any risk that would cause investment errors over the investment horizon.
If you wish to know more about this service, please do not hesitate to contact us & one of our specialists will guide you & help you understand this service in more detail.