Video by Livewire Markets. Livewire Markets brings together the most relevant and informed insights from leading fund managers and investment professionals. The Cadence Team contributes to Livewire Markets.
People may remember that Kerry Packer tried to buy Westpac in 1993… at 90-95c to the dollar. He was trying to buy Westpac for below NTA. Fast forward to now… Westpac is trading at 3 times NTA. So there’s a dollar of NTA… and it’s trading at $3. The reason it’s got there is because Mums and Dads are happy to pay $3 for a dollar of assets because they’re getting 5.5% fully franked yield.