The AI stock this fund has held for 14 years

Note: This Fund in Focus was taped on Monday 28 October 2024.

Investing in growth seems simple at first glance. Just find a stock that is growing sales and profits sustainably, and it will steadily appreciate. 

While that may sound easy, one estimate suggests that there are over 10,000 public companies to invest in around the world. That's 10,000 potential investment opportunities - all of which would claim to bolster your portfolio, but few will have the earnings runway, the growth, and the quality to stand out in your portfolio. 

Enter WCM Investment Management, a California-based funds management firm with over US$95 billion ($150 billion+) in assets under management, specialising in finding the very best opportunities across the global equity universe.

How do they uncover these opportunities? By taking a different slant on some of investing's classic traits. 

For instance, while every company has an earnings moat, few companies have both a large and growing earnings moat. WCM Investment Management wants to find companies that can satisfy both criteria. In addition, they want growth businesses with structural tailwinds, a great competitive advantage, and a strong corporate culture.

Most importantly, they think long-term, and they mean it. Stocks that make it into the WCM Investment Management Global Growth Equity strategy often end up lasting in the portfolio for at least five years. And in the case of one stock that will be highlighted in this video - 14 of the 16 years that the strategy has existed.

In this edition of Livewire's Fund in Focus, Ryan Quinn of WCM Investment Management will explain this long-held stock. Quinn, a Client Portfolio Manager at WCM, will also dive deeper into the team's investment strategy, why they don't rely on macroeconomic factors to make investing decisions, and how they protect against the downside in this volatile asset class. 

Tune in to also hear Quinn's non-consensus view on financial markets today. The answer may well surprise you.

Timecodes

• 0:00 - Intro
• 0:29 - Tell us about WCM Investment Management
• 1:09 - How do you define quality?
• 2:01 - If a newbie investor were to look at your portfolio at a high-level view, what would you want it to say to them?
• Stocks mentioned: Canadian Pacific Railroad (NYSE: CP), Floor & Decor (NYSE: FND)
• 3:25: Why is macro not a part of your fundamental investment process?
• 4:04: Could you tell us about an out-of-consensus market view?
• Stocks mentioned: GE Aerospace (NYSE: GE)
• 6:01: Tell us about a stock you've held for a long time in this strategy.
• Stocks mentioned: Taiwan Semiconductor Manufacturing Company (TPE: 2330/NASDAQ: TSM)
• 7:46: What is your downside protection strategy?
• 9:19: How can investors access this opportunity?

Don't Miss: 

Also don't miss these recent episode's of The Pitch featuring Ryan Quinn

• The company with the power to offer a $4 million product - and still attract a waitlist. By conventional wisdom, this company is very mature but the waitlist for this company's latest product is hundreds of people deep.
• Invest in companies with good corporate cultures (and an unlikely example to get you started) Finding companies with good corporate cultures can also accentuate your portfolio's returns.
• Why "buy and manage" is the better way to invest in stocks. Plus, the secular tailwinds these stock pickers have identified in today's global markets.