Donald Trump makes a lot of questionable comments, but the president is right about one thing: Everybody thinks they’re a great investor in a market hitting new highs.
1. Think long term In a market full of short-term investors, volatility can shake you out of good names. This won’t happen if you have a long-term horizon. For Broad, it’s three to five years. This is especially helpful when investing early on in growth stories, a key tactic, because you want to allow time for their businesses to develop.
“This is where you have earlier stage and potentially disruptive businesses,” says Broad. At the same time, they’re big enough that they’ve started to prove themselves. An example from Broad’s portfolio now is Wyndham Hotels & Resorts WH, +0.55% a franchise hotel business spun out of Wyndham Destinations WYND, -0.28% a year ago. It runs about 20 hotel brands in 80 countries. Wyndham’s significant discount to peers will narrow over time, believes Broad. “It takes spin outs a few years to get their sea legs and get fully recognized,” he says.
“The standard thinking is ‘newspapers are dead.’ It is an easy narrative. The reality is, the New York Times is among a handful of media properties with the brand equity and franchise value to convert to the digital model,” says Broad.
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Thanks for sharing!
This funds inception date is 9/19/2016 ... it's not even 3 years old. Interested to see how it will perform with some real volatility.