Basis Points: We're entering a stock pickers market with Eric Marais | Orbis Investments

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Mar 13, 2025

Eric Marais, an investment specialist at Orbis Investments, dives into the dynamics of contrarian investing. He discusses the trend of reducing exposure to US Big Tech and the resurgence of stock picking as a viable strategy. Eric shares intriguing insights on two stocks: Nintendo and Corpay, linking them to future growth opportunities. He emphasizes the importance of diversifying beyond US markets and critiques the sustainability of high returns amid inflated valuations, inspiring listeners to rethink traditional investment norms.

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INSIGHT

Global Diversification

US stocks, especially Big Tech, have seen extraordinary returns, but this trend might not continue.
Consider diversifying beyond US markets, as company growth and GDP growth don't guarantee stock returns.

INSIGHT

Contrarian Investing

Contrarian investing involves seeking undervalued opportunities others neglect.
This approach is difficult but can be rewarding in the long run due to human behavior.

INSIGHT

Market Convergence

Recent market convergence has made it harder for active managers to outperform.
A Monte Carlo analysis showed fewer randomized portfolios beat the benchmark due to this narrow market.

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We're excited to continue sharing our latest podcast in the Equity Mates network: Basis Points.

Basis Points is all about finding that small improvements that compound into big outcomes. Built for financial advisers, but accessible for everyone, we hope Basis Points can be a resource for those looking to constantly find ways to improve.

We're pleased to share that all launch Basis Points episodes have been accredited by the Financial Advice Association of Australia (FAAA) for CPD points. If you're an adviser looking to claim CPD points for this episode, head to the Equity Mates website here and complete the CPD Quiz for this episode. We'll then email you your certificate.

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Today we’re joined by Eric Marais, Investment Specialist at Orbis Investments.

The past decade has been tough for stock pickers. Active managers have struggled to keep up with the index, particularly in the US, as Big Tech pushed ever-higher and a flood of money flowed into passive ETFs. Our guest today thinks that some of these trends are reversing.

We speak to Eric about:

The case for reducing exposure to US Big Tech
Some counterintuitive ideas that form the basis of Orbis’ philosophy
Why Eric believes animal spirits are back
How we could be entering a stock pickers market
Two stocks Eric finds interesting: Nintendo (TYO: 7974) and Corpay (NYSE: CPAY)

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Orbis Investments is one of launch partners for Basis Points.

If you would like to learn more about how Orbis' funds can fit in a clients portfolio, head to: https://www.orbis.com/au/adviser/home

Thank you to Orbis Investments for helping us keep all of our content free and accessible.

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In the spirit of reconciliation, Equity Mates Media and the hosts of Basis Points acknowledge the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people today.

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Basis Points is a product of Equity Mates Media.

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