Related Articles
Top Stories
Feb 13 2012 12:15
Miner Xstrata says it has brought forward maintenance on two furnaces to assist Eskom to save power.
Feb 13 2012 10:43
Although jobs were created, the economy is still 420 000 jobs short of the peak employment level before the 2009 global financial crisis, says Adcorp.
Feb 13 2012 07:58
Greek lawmakers have approved a new round of drastic austerity measures after a long day of street battles between police and protesters left dozens injured.
Cape Town - Noting that markets can be volatile over the short term, and investors are often encouraged to invest for the long term, Greg Fury, chief operating officer of Allan Gray, says a four-year view informs every share investment at his company.
"We tend to invest in stocks that are out of favour and, as a result, are trading at prices significantly below our assessment of the company's intrinsic value," he said on Monday.
"The four-year investment horizon typically allows sufficient time for an undervalued asset to return to fair value as the market recognises its earlier, irrational pessimism."
Fury says that taking a four-year view when investing doesn't necessarily mean Allan Gray will hold every stock for four years. "The price of a stock can change daily, even hourly. If it suddenly goes up substantially, and in our assessment it's trading at fair value, we might sell immediately and use the proceeds to invest in our next best idea," he said.
"While there have been a few times in our history when portfolio turnover is a bit higher, our average holding period is almost always longer than four years."
- I-Net Bridge