June 29th, 2020: WAM Funds' Tobias Yao: "The fundie looking for the next Afterpay"
Tobias Yao in the Australian Financial Review
WAM Funds Portfolio Manager Tobias Yao shared his personal investing journey in the Australian Financial Review’s ‘Monday Fundie’ column. Tobias discussed his love of disruptive technologies and business models, the thrill of finding emergent industries and why WAM Funds like online retailer Temple & Webster Group (ASX: TPW).
As an aside, I also note that TPW is a company favoured by Claude Walker, who quit his job at The Motley Fool (Claude ran their "Hidden Gems" subscription service) 2 years ago, and is now writing for "A Rich Life". Claude has been bullish on Temple & Webster on Ausbiz' "The Call" in recent weeks (during that episode he mentions TPW while discussing HVN), but I believe he sold out too early and now regrets that decision.
It's a lesson I've also had to learn the hard way - it's not so much to let your winner run, although that's part of it. It's more that when you think something is overpriced, it doesn't mean it won't go even higher, so rather than sell out entirely, just start trimming your position. In other words, if it goes up 50%, sell one third, to take you back to your original weighting, and then rinse and repeat. For example.
However, everybody has to find what works for them personally. I personally like to trim my winners gradually rather than sell out entirely, until the investment thesis is busted, in which case I'll be out PDQ. I've also learned not to muck around when a company is no longer what you thought it was when you invested in it.
I don't personally hold TPW. I find it hard to buy companies that have gone vertical - like they have recently. However, I agree with Tobias and Claude that TPW has the type of retail business model that is going to continue to work very well in our brave new world, and I'd certainly be looking at them if they had a decent pull-back.
30-July-2020: In this LivewireMarkets Buy-Hold-Sell segment, Vishal Teckchandani discusses CCX (City Chic Collective), TPW (Temple & Webster) and UWL (Uniti Group, formerly Uniti Wireless Group) with Tobias Yao from Wilsons (Wilson Asset Management Group) and Arden Jennings from Ausbill.
Tobias and Arden both rate CCX, TPW and UWL as BUYS, and Arden said that both UWL and CCX were high conviction positions for Ausbill, with CCX in both their Ausbil Small Cap Fund and their Ausbill Microcap Fund. However, both WAM Funds (Wilsons) and Ausbill clearly hold all 3 companies in their respective funds.
Tobias also likes IFM (Infomedia) and Arden likes LIC (Lifestyle Communities).
Warning: Vishal's puns could elicit the odd groan...