Frank Jasper – Chief Investment Officer, 06 March, 2019

The state of the global economy and volatile markets has been the focus of much discussion in past few months.  It makes for great conversation and a lot of, mostly scary, newspaper headlines.

While interesting it’s not what really drives the long run return of your investment portfolio. Ultimately it’s the power of companies earning greater profits and being rewarded with higher share prices that delivers long run returns. The noise of the now invariably disappears to a whisper in the long run.

It was nice to be reminded of that in February.

One of our long term investments in our Australian share portfolio, Nanosonics released its profit result for the past six months. It was a good number with the highlight being strong top line growth, as well as revenues being up 36% and healthy profit margin expansion as the company was able to leverage investments made in previous years. This strong result was rewarded with the stock rallying 24.2% over the month.

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