The second episode of Outperformance Matters, the new podcast from Blue Whale Capital is now available. This episode takes a deep dive into taking a contrarian view when investing, with Blue Whale’s Chief Investment Officer Stephen Yiu highlighting that if you want to be better than the rest you must do something different. The challenge, however, is not only that you need to be right about your views, but you also have to get the timing of your decisions right.
The discussion looks at how to be a contrarian by focussing on company fundamentals and keeping a close eye on data to spot changes in industries or sectors which are happening outside of the normal economic cycle before the market. A number of examples are discussed to showcase how this approach could have delivered impressive returns or avoided significant losses for investors.
This week’s Myth Busting segment looks at the idea that timing investments does not matter if you have a long-term time horizon. Yiu argues that, in fact, getting the timing of investment decisions right has a dramatic impact on compounding.
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