Why We Prefer Lower-Risk Equity Portfolios

Insights, Published 21st October 2021

At Te Ahumairangi, we aim to build equity portfolios that are predominantly invested in shares of low to average risk, and we try to only invest a relatively small proportion of funds into riskier shares that would be likely to fall harder than average if the market declines...

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If The Market Falls, What Will Fall Hardest?

NBR Articles, Published 5th October 2021

Global markets are trading at elevated levels, inflation has risen. These facts indicate that there is a greater than normal risk that the equity market could take a big tumble in the next few years. In this article we discuss which sorts of stocks are likely to fall hardest if the market tumbles. We highlight some types of equities that could fall hard, including companies exposed... 

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Clear Market Inefficiencies vs Differences Of Opinion

NBR Articles, Published 18th May 2021

There are many examples where the equity market has clearly done a poor job at pricing particular equities. If fund managers could exploit these examples of “inefficient” market pricing, they should be able to beat the market. However, the evidence suggests that most fund managers fail to beat the market. This article discusses why...

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Why Higher-Risk Doesn't Pay Off In Equity Investing

NBR Articles, Published 9th March 2021

Historically, higher-risk equities have not produced any incremental return to compensate for their incremental risk. The behaviours that have contributed to this "anomaly" continue to this day. This creates opportunities for investors...

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Premium On Growth Stocks Echoes Dotcom Boom

NBR Articles, Published 1st September 2020

The premium that investors have to pay to invest in growth companies is the highest its been since the dotcom boom. To achieve good returns over the next several decades, a number of today’s darlings (e.g., Nvidia,, Tesla) would need to grow to the point that they become even more dominant than Microsoft and Apple are today. While some companies may achieve this, many will disappoint...

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