Poll position – Why our thinking on ‘Brexit’ is not so much a view as a ‘déjà view’
“Do you, as professional investors, have a view on the ‘Brexit’ referendum?” In recent months, it is a line we have been hearing with ever greater frequency, here on The Value Perspective – though not, we fondly imagine, from any regular visitors to the site. They, we like to think, already know the answer to that question, which is … the only view we have on the ‘Brexit’ referendum, is we have no view.
Regular visitors might know this, for example, because they read our article Polls apart a little more than a year ago. Having raised the possibility that people might already be “feeling jaded by the constant procession of so-called experts speculating on who will and will not win the upcoming general election”, it asserted: “You might as well ignore anything any pundit has to say on the outcome.”
Or else they might know this because they read our article Poll fault a little less than a year ago. Here, with barely a hint of a gloat, we observed: “We may have got our pre-election anti-forecast right but that does not mean we will be getting cocky. We are well aware that, just as we ourselves did not know how the election would turn out last week, we cannot know what will happen next week.”
The confidence with which we expressed our view that, on matters such as forecasting election results, we should have no view had twin foundations – our well-documented suspicion of forecasts and those who earn a living from making them and our even more frequently expressed faith in value investing and its long-run ability, among other things, to turn bad headlines into good investments.
“By focusing on the long term, we avoid buying into any prevailing opinions or other ‘noise’ that could influence portfolio decisions,” is how we concluded Poll fault – and may as well do so again here. “We are mindful of their possible impact but can point to more than 100 years of history that shows an unemotional, valuation-based approach to investing should deliver over the long run – regardless of anything economic, political or any other forecasters might have to say.”
Fund Manager, Equity Value
I joined Schroders in 2015 as a member of the Value Investment team. Prior to joining Schroders I was responsible for the UK research process at Threadneedle. I began my investment career in 2001 at Dresdner Kleinwort as a Pan-European transport analyst.
The views and opinions displayed are those of Nick Kirrage, Andrew Lyddon, Kevin Murphy, Andrew Williams, Andrew Evans, Simon Adler, Juan Torres Rodriguez, Liam Nunn, Vera German and Roberta Barr, members of the Schroder Global Value Equity Team (the Value Perspective Team), and other independent commentators where stated.
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