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‘Disruption’ fever Is Masking Immense Opportunity In Incumbents

Disruption has become one of the most used words in modern investing. The bifurcation of sentiment and valuations among those deemed as victims and those as initiators, has often become extreme. Investor fervour to ‘be on the right side of change’ has not only driven the valuations of the perceived winners to excessive levels, it has also resulted in the overlooking of many fundamentally sound businesses. We have witnessed numerous examples of this in recent times and have taken the opportunity to buy into many high-quality businesses trading cheaply relative to any reasonable assessment of medium term prospects. Below are three sectors...