A hated sector that Ben Graham would love

Michael Goldberg and the team at Collins St Value Fund know a thing or two about making money off unloved and out of favour stocks and sectors. Their investments in uranium and a then-unloved pharmaceutical stock (among others) have helped them outperform the ASX 200 by over 8% per annum in the 5 years to 30 June.

With both of these investments having seen some outstanding returns in recent years, the obvious question is where to look next? In this episode of The Rules of Investing podcast, he addresses exactly this question. His answer is unlikely to be popular among investors, but isn’t that the point? Tune in below and you’ll also hear about the ‘superinvestors’ he’s learned the most from, and he tells us about a founder-led company with outstanding prospects for growth. 

Topics discussed:

• 2:40 – Why the CSVF approach worked in a notoriously unforgiving environment for value managers
• 9:00 – Michael’s background in business
• 12:41 – The super-investors have been most influential on his investing journey
• 15:31 – Why are founder-led companies so attractive?
• 19:46 – What are some attractive founder-led businesses?
• 30:50 – The case for uranium
• 45:48 – The longer-term outlook for uranium and the impact of 'Wall St Bets' enthusiasm
• 48:38 – The next unloved theme set to emerge
• 54:34 – Michael answers our three favourite questions.

Books discussed:

1. The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success, by William N. Thorndike. Available on Amazon and Booktopia.  
2. Thinking, Fast and Slow, by Daniel Kahneman. Available on Amazon and Booktopia.  
   
3. One Up On Wall Street: How To Use What You Already Know To Make Money In The Market, by Peter Lynch and John Rothschild. Available on Amazon and Booktopia. 

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