Company profit reporting season: the wrap-up
Notwithstanding the significant market volatility of the past two weeks, the main focus for First Samuel's investment team was the FY-15 profit reporting 'season' for most of our companies.
This is a very interesting time of year, as it allows for sober reflection on the actual position of listed companies and provides management opportunities to outline plans in the year and years ahead. Historically, we have benefited from reporting as the emotional quotient of the market is reset to the financial reality (companies that have overshot tend to retrace, companies that are oversold benefit).
Our approach to this time of year has always been to stay very focused on our businesses. We also build the richness of our knowledge of potential investments.