In a recent article from Daniel Arbon at The Australian Financial Review, several fund managers including Talaria Co-CIO Hugh Selby-Smith discuss why the surprise winners of an AI future could be value stocks. That is, companies trading below their intrinsic value – often mature, cash-generative businesses that are neglected by investors focused elsewhere.
“In a slower-growth, and perhaps higher-rate world, investors will be focused on near-term cash flows. That would favour lower-risk companies returning capital quickly over those whose valuations depend on earnings far into the future, ‘ Hugh said.
