The ‘special’ stocks Emma Fisher is hitching the Airlie wagon to

Truly special businesses don’t come along very often. Those with enduring competitive advantages, the ability to grow for long periods and produce high returns on capital. When you find a rare business like this, it’s important to think long term, and “hitch your wagon to those economics”, says Emma Fisher, Portfolio Manager and Head of Research at Airlie Funds Management.

That’s exactly what she did when making her first recommendation as an analyst back in 2013. At the time, CSL was trading around $60 per share. She continued following the company, and when starting at Airlie in 2016, advocated holding the stock across their portfolios.

Her patience and commitment have paid off, with CSL up nearly five times from her initial recommendation, and three times since 2016. But today CSL faces new challenges in a COVID-affected USA.

In this episode of The Rules of Investing podcast, we discuss those challenges and how CSL is placed to navigate them. We also hear why markets are underestimating Aussie retailers yet again, and we learn about an Aussie small cap powering ahead on its Formula 1 credentials. 

My colleague Glenn Freeman has summarised some of the key points from our discussion in the wire below.

Equities

You can’t be successful if you stick with consensus: Emma Fisher

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Topics discussed:

• 2:10 - What makes Emma tick as an investor.
• 5:24 - Do you need a finance degree to be a good investor?
• 8:16 - Emma's first recommendation as an analyst - CSL.
• 13:10 - Does the case for CSL stack up today?
• 16:21 - The Airlie investment philosophy.
• 20:25 - Important lessons from working with great investors.
• 23:28 - The most talked about topic in markets in 2021.
• 29:39 - Are markets underestimating Aussie retailers yet again?
• 35:40 - An Aussie small cap powering ahead on its Formula 1 credentials.
• 40:58 - Emma answers our three favourite questions.

Books discussed:

• Capital Returns,  by Edward Chancellor. Available on Amazon and Booktopia
• You Can be a Stock Market Genius, by Joel Greenblatt. Available on Amazon and Booktopia.
  
• The Most Important Thing, by Howard Marks. Available on Amazon and Booktopia.
• Warren Buffett's letters to Berkshire Hathaway shareholders, 1977-2020. Available on the Berkshire Hathaway website.
  

Invest where fair value exceeds market price

Airlie Funds Management identifies Australian companies based on their financial strength, attractive durable business characteristics and the quality of their management teams. Stay up to date with their insights by hitting follow on Emma Fisher's profile, or visit their website for more information.