Argonautica

Professional investors can review published thought leadership and market updates from the Argonaut Investment Team.

2 posts found for November 2012

‘Are European funds positioned where you think they are?’

We have written in a previous blog (Access to capital and the uncommon stock – the true driver of the “nifty fifty” new stock market cycle) regarding uncommon stocks and how their competitive advantage in terms of cost of capital enables them to generate earnings growth within a low-growth macro-economic environment. Some of the examples mentioned were household names such as Nestle and Volkswagen. What these companies also have in common is size. Size brings economies of scale, lifts barriers to…

‘Access to capital and the uncommon stock – the true driver of the “nifty fifty” new stock market cycle’

Despite central bank money printing and near to zero interest rates capital remains difficult to access for most companies. This is not, however, true for every company. For a small number of companies – we shall call them uncommon stocks - capital has never been cheaper or more widely available. This contrast between companies that have access to capital and those who do not is in our view perhaps the single most important theme of this new economic and stock market cycle. Investing in those companies…