Australian Investors Podcast 3 small caps with competitive advantage, low churn & great runways
8 snips
Jan 17, 2025 Rob Miller, Portfolio Manager at NAOS Asset Management, shares his expertise in long-term growth investments and sheds light on three ASX shares with great potential: Dropsuite Ltd, Hancock & Gore Ltd, and Objective Corp Ltd. The discussion highlights the significance of analyzing management's role, understanding competitive advantages, and the importance of preparation for ASX reporting season. Miller emphasizes the power of patience in small-cap investing and the need for robust customer retention strategies, particularly in tech-driven markets.
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Episode notes
Reporting Season Prep
- Prepare for reporting season by noting key questions for management and anticipating financials.
- Remember that one reporting season doesn't define a good company; focus on the long term.
Compounding and Risk
- Volatility doesn't equal risk; risk is permanent capital loss.
- Consider reinvesting in winners if their fundamentals improve faster than their share price.
Capital Allocation
- Invest in trustworthy management teams with proven track records.
- Evaluate capital allocation by analyzing how CEOs reinvest cash flows and generate returns.