Wealthy + Wi$e Ep 6 | Dogs, Unicorns & the Pursuit of Value

In this episode, we once again showcase Wealthy + Wi$e, our collaboration with ausbiz. We look at whether you really can pick "unicorns". The challenge is that unicorns are only obvious in hindsight, but dogs are easier to identify early.

A unicorn is a company that gives extraordinary long term returns, but you usually only realise it's a unicorn down the track.

But dogs are easier to spot. The warning signs include companies that have never made a profit, shrinking earnings, too much debt, and management with a track record of poor or unethical decisions, or illegal activity.

Star Entertainment is a case in point.

And there are more dogs than you think. In fact, more than half of the companies on the ASX are loss making.

We hear from Teaminvest's Andrew Coleman, Brian Han from Morningstar, and Marc Whittaker from IML. Their advice is to avoid dogs and don't chase unicorns, because avoiding bad companies is easier than finding stars.

They tell us who they see as dogs and who they see as unicorns among these stocks: Myer (ASX:MYR) , EML (ASX:EML), Star (ASX:SGR), Healius (ASX:HLS), TechnologyOne (ASX:TNE), REA Group (ASX:REA), Cleanaway (ASX:CWY), and Jumbo (ASX:JIN).

*Partner content

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