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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. As 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 portfolio.
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.