Episode 34: Should you invest in growth stocks?

This week we discuss recent jumps in growth stocks, emerging markets, property investments in Brisbane and developing a savings mindset.

There seems to be a change in the attitude towards growth stocks recently. We’ve seen a number of our portfolio holdings jumping by a substantial amount in the past week. If you’re not familiar with growth stocks, they are the faster growing, higher revenue, higher sales growth companies that tend to trade on much higher price-to-earning ratios than your typical blue chip companies. They are typically in the mid cap and small cap areas of the stock market and are the companies that overtime tend to outperform the large caps, but they can come with a lot of volatility.

A typical Commonwealth Bank or Telstra type of company tend to make a similar amount of profit per year, whereas growth stocks tend to trade at a much higher growth rate. Even though these companies come with higher price-to-earning ratios, they can actually be more affordable because of how quickly they are growing their profits. Listen in for insights on some of the companies we have invested in pre-profit that have generated high returns.

For professional advice on managing your portfolio contact United Global Capital today on 03 8657 7640 or email [email protected] for a no cost, no obligation consultation.

Our Investor Exchange Round Table Discussion Covered:

  • Emerging markets were hammered quite badly in 2018, however, Joel explains there have been some interesting developments from a macro perspective. Progress in the Trump and US/China trade discussion appears to be far less acrimonious than it has been and the China stock market is finding some footing and strength. Tune in for more details now. (12:26)
  • Brett has recently returned from Brisbane, where he was buying property for a client. Queensland has the second lowest stamp duty rate, following the Australian Capital Territory. However, the real reason to invest in Brisbane is the data that shows it is likely to have the best growth over the near team. Listen in for more research insights. (25:51)
  • Louis explains the fourth step in his series on getting your finances in order as part of your New Year’s resolution, which is building a savings habit. It’s not about how much, the outcome, or interest rate; what’s most important, is building the habit. Once you have built a habit, you have created the foundation and 80-90% of the job done. Tune in for his tips. (37:50)

You Cannot Be Serious this week:

An Australian pilot tasked with testing a single propeller planes new engine, got bored, so he decided to trace his route and spell out “I’m bored”, but that wasn’t enough so he decided to trace out the ol’ cock and bull in the sky!

Karl Lagerfeld has decided to bequeath his entire $195 million estate to his cat! So, who owns the cat now?

Nurses at a hospital in Italy wanted to be transferred to a hospital ward that was easier than the emergency department, so they decided to release a bag of cockroaches. A cockroach expert came in and identified the cockroaches were imported from South America! The jig is up.

Write in to get your investment and wealth management questions answered by Joel, Brett, and Louis.

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The Investor Exchange Theme Music: “Happy Happy Game Show” by Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0.h America! The jig is up.