One of the keys votes of confidence for a business is when management buy shares of their own company.
WAM Global Limited (ASX: WGB) is the newest listed investment company (LIC) launched by the high-performing Wilson Asset Management (WAM).
The key difference with this LIC is that it’s the first to focus on shares outside of the ASX. Some people may think is leaving WAM’s home advantage field, but I think the winning investment process can be applied to overseas shares as well.
Geoff Wilson put in a substantial amount of money at the start of WAM Global’s life and this morning it was announced the trust he is a beneficiary of bought another $154,982.88 worth of shares. He is close to having $6 million invested in WAM Global. That’s a big vote of confidence!
Whilst the ASX has a lot of shares to choose from, there are far more opportunities listed across the rest of the world. Indeed, Australia only makes up about 2% of the global share market.
WAM Global has invested in businesses it thinks are undervalued growth shares, with some recognisable names like American Express, gaming company Hasbro and consumer goods business Reckitt Benckiser.
Whilst the first month or so since listing wasn’t a fantastic start, I believe over the long-term WAM Global will comfortably outperform its benchmark after fees. At the end of July 2018 it still had 38.4% of the portfolio as cash – leaving ample ammunition for additional investment opportunities as well as protection.
If Geoff Wilson is happy to invest at the current price then I’d be happy to do so as well. Whilst I already own some WAM Global shares I would like to accumulate more over time, hopefully it doesn’t start trading at as high of a premium as the other leading WAM LICs.
However, WAM Global won’t be paying a dividend for a while. So if you’re looking for growth and dividends then it could be better to buy this top dividend share in the meantime.
You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!
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Motley Fool contributor Tristan Harrison owns shares of WAMGLOBAL FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.