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What shares do bottom-up, value investors buy in the current Australian sharemarket?

What shares do bottom-up, value investors buy in the current Australian sharemarket? Well they don’t buy the big tier resource companies. “We believe their shareprices are overblown and they need to come back to earth,” says Bob Van Munster, long standing veteran of the Australian sharemarket and head of Tyndall Equities.

Instead Van Munster and his team at Tyndall who specialise in undervalued, unloved and overlooked companies are buying insurance, steel and gaming companies. It’s a tall order but Van Munster believes that insurance companies, that have been hit hard for flood and cyclone claims will benefit from a period of lower claims. How does he know? Well Tyndall has looked at other big claim periods and they have been followed by a fairly quiet period of claims.

Van Munster even likes retail companies, which have been marked down on soft retail sales. Van Munster believes retailers could benefit from the increased savings levels of Australians. “The margins will come back,” he predicts.

Van Munster describes his share picks as “somewhat eclective.” But in his 35 year investment experience as an Australian share portfolio manager, he likes sectors that are at the bottom of the cycle. They are more likely to rise, he says.

Van Munster is positive about the direction of the Australian sharemarket but says be prepared for the short-term correction to continue. “However the medium term outlook for the Australian sharemarket is robust.”

He says developed economies are improving dramatically. “We are starting to see employment improve, even in Europe.” But the developing world has problems, particularly as China tightens credit and this has already sent commodity prices lower with the copper price down 15 percent recently.

User comments
I read your responses with interest, and wondered, if an unsophisticated investor such as myself, was to ask you who to invest in... what would you suggest?
I too would like to see this guys record,I personally ignore all advice from "experts and advisors" make my own mistakes and learn from them and have done quite well. These "experts and advisors" are so busy being clever they ignore basics.
The acid test for fund managers and the like is to look at their history over 5 years or so. Anyone can make predictions and most of us do. The question is how accurate were the forecasts when history turns the page(s)and reveals all
Hmm....On balance I think he's right. What goes up will usually come down and if it's any good, what comes down will usually go up again. I'm with Tyndall. Patience!
What a disgraceful waste of space and time this "advertorial" for Mr Van Muster was....if he was a successful portfolio manager for over 35 years he should long be retired....I sincerely hope his woolly forecasts are ignored by all especially unsophisticated investors whose funds he is wishing to manage... Henry Fund
I would have expected such an article to tell me about Van Munsters track record particularly during the last few years. Is he any better than the others??
Maybe some details like "the margins will come back" should have a time line attached to it because if you are looking for them to return in the short term you will be looking for a few years.
hmm... this guy's so smart and you should entrust him to manage your money and invest in an eclective portfolio.

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