‘An easy one’: Expert reveals which ASX share he’d hold for 4 years

Ask A Fund Manager: Catapult Wealth’s Tim Haselum reveals the stock he’d be happy to stick with and the one that gives him pangs of regret.

| More on:
A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Catapult Wealth portfolio manager Tim Haselum explains why one particular ASX share would sit comfortably in his stable for years to come.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Tim Haselum: I went for an easy one here, and it’s just the ASX Ltd (ASX: ASX).

We like the fact that it’s a near monopoly, but obviously making some good moves upgrading the tech. They’ve had some wobbles and issues but that’s fine. 

I would say, look, if you’re on a 20-year timeframe, maybe I’d be a little bit worried about something happening, but on a four-year timeframe, we think that the earnings are pretty predictable and stable here. We think there’s going to be lots of capital raisings here, equity market volumes seem to be relatively strong.

We think that now the RBA is not trying to tamper with [the] yield curve, the bond trading revenue’s going to come back, I just think when it comes to predictability of earnings and market share, ASX is one that’s for four years, there’s no worries there. It’s pretty high quality in our books.

MF: Great to hear your opinion on ASX the stock, because we don’t have a lot of analysts that cover it.

TH: Probably because it’s boring!

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

TH: I would say the missed opportunity, it has to be Afterpay, right?

For us, we looked at it and we were just like, “The valuations are just… Where are you pulling it from?”

You could argue that the buy now, pay later segment in general, that was our generation’s tech boom. It was insane. 

We just thought it looked so frothy and even though Afterpay had the first-mover advantage and it did look prestigious and it clearly got a lot of traction, it was just too hard a call to put it in the portfolio. 

What’d it get to? $7 at the bottom of COVID [in March 2020]?

MF: Yes, around there.

TH: The amount of upside that we missed out on was humongous, but for us when we think about quality and value and those measures, it was just too hard a call to put it in. 

I mean, I know a lot of people were pumping up Zip Co Ltd (ASX: ZIP) and look what happened to that, right? Maybe flip a coin, Afterpay or Zip, and maybe it was right just to stay away but that was a tough one. Especially when it got taken over, the regret… I was like, “damn it”!

MF: But one could argue, if it was still a standalone stock now, it would be quite low.

TH: That’s right. Yeah.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Ask a Fund Manager

one hundred dollar notes planted in the ground representing growth asx shares
Small Cap Shares

‘Richest pipeline’ in ASX: Expert names 3 small-cap shares to buy

Ask A Fund Manager: Alto Capital's Tony Locantro also reveals what his biggest regret in investing is.

Read more »

A group of three scientists talking excitedly while working in a lab on a diabetes test developed by Proteomics International Laboratories which is an ASX share tipped to explode by Alto Capital
Ask a Fund Manager

2 ‘outstanding’ small-cap ASX shares that could explode: expert

Ask A Fund Manager: Alto Capital's Tony Locantro reveals a pair of small caps that he reckons have a bright…

Read more »

Stock market, ASX, investing
Ask a Fund Manager

From chasing criminals to ASX gems, why this ex-cop keeps buying in a bear market

Ask A Fund Manager: Alto Capital's Tony Locantro tells how he deals with turbulent times for stocks, like this year.

Read more »

A doctor and an elderly couple sit at a desk and look at a lung scan uploaded using Alcidion software as the Alcidion share price falls
Ask a Fund Manager

Buy and hold this ‘incredibly undervalued’ ASX share for 4 years: fundie

Ask A Fund Manager: Cyan Investment Management's Dean Fergie is confused as to why this medical software business has been…

Read more »

A couple hang off their car looking at the sun rising over the horizon.
Ask a Fund Manager

‘Great long-term investment’: Expert names small-cap ASX share to buy for cheap

Ask A Fund Manager: Cyan Investment Management's Dean Fergie gives his thoughts on three stocks that have halved in price…

Read more »

Dean Fergie, Cyan Investment Management fund manager
Ask a Fund Manager

‘Extraordinarily cheap’: The ASX share where 77% of its value is cash

Ask A Fund Manager: Cyan Investment Management's Dean Fergie reveals two shares that are absolute bargains at the moment.

Read more »

Dean Fergie, Cyan Investment Management fund manager
Ask a Fund Manager

Why this is the best time to buy small-cap ASX shares: fund manager

Ask A Fund Manager: Cyan Investment Management's Dean Fergie tells how smaller companies have plunged in value this year but…

Read more »

a man holds a plunger while also holding his arms aloft in a pose to show off his muscles and strength with a wry smile on his face.
Ask a Fund Manager

What I’d do with 3 ASX shares that have plunged this year: expert

Ask A Fund Manager: Redpoint's Max Cappetta names a 105-year-old 'green' company with excellent 21st century prospects.

Read more »