Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

24 December 2024

Home / Sponsors / Orbis Investments

Orbis Investments

To generate superior long-term returns, you need to think and act differently.

At Orbis, we have been confidently investing in unpopular or ignored stocks for over 30 years. We’re interested in long-term potential, rather than short-term performance, and our team of 60+ investment professionals focus on unearthing companies trading for less than we believe they are worth, rather than timing market trends. But to find these opportunities, you can’t think like everyone else.

To aim for better than average results, you need to be built different to the average.

We believe that the best way to create long-term value for clients is by finding value others miss. While that idea is not unique, for most it’s easier said than done. The Orbis difference is in how we’ve structured our company to achieve this:

  • Private ownership unlocks long-term value
    Contrarian investing can be uncomfortable, and it can take time for our ideas to pay off. Being privately owned means we have no external pressure for fast results and instant success. We put the best interests of clients first, ensuring our focus remains on building them wealth over the long-term.
  • Only proven stockpickers make the decisions
    Before they invest your client’s capital we test that our contrarian analysts can truly outperform. They’re accountable for every decision they make, which we track and measure rigorously. This unique system focuses on the facts, separating skill from luck, so only proven outperformers work for your clients. It’s an approach we’ve adopted with successive generations of contrarian stockpickers, and it will never change.
  • Shared interests, shared success
    We’re rewarded when clients outperform. It’s that simple. We are designed differently to keep us solely focused on performance. Investors get a performance fee refund if we don’t beat the benchmark, so our success is tied with theirs. This ensures we remain driven by the same motivation: to achieve long-term returns.

Australian investors can access this deep global equity expertise through our Australian-registered Funds. Visit orbis.com for more information.

Equity Trustees Ltd AFSL No. 240975 (EQT) is the issuer of units in the Orbis Funds domiciled in Australia. You should consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before acquiring or disposing units in such funds. The relevant PDS and TMD can be obtained from orbis.com. Each TMD sets out who an investment in the fund might be appropriate for and the circumstances that trigger a review of the TMD.

The Orbis logo is a registered trademark of Orbis Holdings Limited and is used under licence.

Videos

The unsung heroes of the energy system
The unsung heroes of the energy system

Digging deeper: unearthing hidden opportunities
Digging deeper: unearthing hidden opportunities

 

A cut above the rest Positive Energy: A contrarian take on transition Solving the diversification dilemma

 

Latest sponsor articles

Is FOMO overruling investment basics?

Four years ago, we introduced our 'bubbles' chart to show how the market had become concentrated in one type of stock and one view of the future. This looks at what, if anything, has changed, and what it means for investors.

Gold: trustless, rustless, shiny, and tiny

While gold can create divisive views - Buffett called it a valueless pet rock - this assesses its place in portfolios from a supply-demand standpoint and versus currencies. Both angles suggest some exposure to gold is prudent.

Emerging market equities are ripe with opportunity

Emerging markets offer compelling value compared to history and the stretched valuations of developed market equities. Investors can benefit from three big tailwinds, but only if they are selective.

The power of dividends

In an era where growth companies dominate and the likes of Nvidia grab all of the attention, dividend paying stocks are flying under the radar. Some of these stocks offer compelling prospective returns.

Are expectations for the Magnificent Seven too high?

Valuations for the Magnificent Seven stocks are baking in extraordinary growth over the next decade. History shows that delivering on high growth expectations is difficult, but will this time prove different?

Passive investors exposed to bubbliest market segment

Thanks to the 'Magnificent Seven' stocks, global passive investors thrashed most active peers in 2023. But there's a hitch: these investors' portfolios are now concentrated in the most overvalued segment of the market.

Preparing for next decade's market winners

Investors are overexposed to recent winners, namely large cap, growth stocks. As a whole, these stocks are exceptionally expensive, which means investors may need to switch strategies to outperform going forward.

Is there still value in high dividend-yielding companies?

After a hiatus last year, growth stocks are back in vogue as investors search for the 'next big thing'. That makes today's market environment unusually rich in attractive, high dividend-yielding companies.

From stockmarket boom to stockpicker’s opportunity

Given the last decade delivered phenomenal stockmarket returns, investors should expect the next decade to prove more challenging. However, 'value' stocks are cheap, providing compelling opportunities for contrarian investors.

Why an active fund should not perform like its benchmark

Every fund is measured against a benchmark, but active managers earn their fees by taking strong views contrary to an index. It requires fortitude in the short term as interviews with Orbis and Allan Gray show.

Passive investing has risks too

Last year was rough for investors, especially where equity and bond portfolios were not as diversified as they thought. Spreading the risk sounds simple but watch that funds are not all doing the same thing.

Defining contrarianism in three stocks

Contrarian investing is not about doing the opposite to everyone else no matter what, it’s having courage in your convictions in a disciplined investment process. Here are examples of contrarian investing in practice.

What to do about our distorted relationship with money

We’re in a rare moment in history where the term premium has been negative for a number of years.  History suggests that won't last, and here are the best ways to position your portfolio to benefit from the change.

Firstlinks Interview Series - bonus eBook

A collection of interviews with financial markets experts on investing, superannuation, retirement and other topical issues, as published by Firstlinks over 2021 and 2022.

Four principles for choosing the right active manager

Investors face a difficult decision when choosing their fund managers. Here's a guide for how they can find active managers with sustainable long-term advantages who can help make a difference to their portfolios.

Investors don't forecast well, and that's good news

All the evidence suggests investors can't forecast well. While that might appear to be bad news, if you dig a little deeper, it can create opportunities for those investors that are prepared to think differently.

Investment opportunities in the global energy crunch

Investment in the energy sector has dropped significantly but demand continues to rise. Higher prices normally trigger more spending and increased supply. If this is not the case, it creates investment opportunities.

Time for value as ‘promise generators’ fail to deliver

A $28 billion global manager still sees far more potential in value than growth stocks, believes energy stocks are undervalued including an Australian company, and describes the need for resilience in investing.

Why are some companies vulnerable in 2022?

Most analysts are blaming inflation, rising rates and the threat of war for the current market weakness, but many companies were vulnerable well before these concerns as a result of stretched valuations.

Why starting points matter

There have been few times in the past 140 years when investors were willing to pay for more than 30 years’ worth of earnings, yet here we are around 40. This starting point does not augur well for future returns.

Investing in Japan: ready for an Olympic revival?

All eyes are on Japan and the opportunity to win for competing athletes. After disappointing investors for many years, Japan is also in focus for its value, diversification and the safe haven status of its currency.

Is crypto a currency or a collectible?

Cryptocurrencies have created the perfect recipe to encourage speculation with the most important ingredient for a bubble to form being something new and shiny to attract investor attention. What's it really worth?

Sponsor White Papers

Sunrise on Venus: Preparing for the investing environment of the next decade

Using long-term data, this paper looks at how we got here, which equities are at risk, why the investing world is changing, and how investors can prepare for the decade ahead.

Value investing myths, debunked

As the growth versus value debate intensifies, this report from Orbis seeks to debunk three oft-repeated myths about value investing with hard data and considered analysis.

Allan’s Legacy - Investment Thinking

Orbis founder Allan Gray's distinctive investment philosophy has been in place at Orbis since inception. This paper highlights a small selection of the investment insights that have resonated most with those who worked with Allan over the years.

Active Management: A Practitioner’s Perspective

The chorus proclaiming the “death of active management” has grown louder in recent years and there has been a massive shift of capital out of active and into passive strategies.

Value and Growth Investing in Perspective

If value investing works so well over the long term, why has the performance of value shares been so dismal over the past five years? We look at the historical relationship between and value and growth shares.

Most viewed in recent weeks

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Australian stocks will crush housing over the next decade, one year on

Last year, I wrote an article suggesting returns from ASX stocks would trample those from housing over the next decade. One year later, this is an update on how that forecast is going and what's changed since.

Avoiding wealth transfer pitfalls

Australia is in the early throes of an intergenerational wealth transfer worth an estimated $3.5 trillion. Here's a case study highlighting some of the challenges with transferring wealth between generations.

Taxpayers betrayed by Future Fund debacle

The Future Fund's original purpose was to meet the unfunded liabilities of Commonwealth defined benefit schemes. These liabilities have ballooned to an estimated $290 billion and taxpayers continue to be treated like fools.

Australia’s shameful super gap

ASFA provides a key guide for how much you will need to live on in retirement. Unfortunately it has many deficiencies, and the averages don't tell the full story of the growing gender superannuation gap.

Looking beyond banks for dividend income

The Big Four banks have had an extraordinary run and it’s left income investors with a conundrum: to stick with them even though they now offer relatively low dividend yields and limited growth prospects or to look elsewhere.

Sponsors

Alliances

Site Map

About Firstlinks

© 2024 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.