A strong or ‘on song’ growth story can all too easily allow investors to overlook risk or attach too much value to a powerful investment story that only drives a more moderate part of the total picture for future earnings. Conversely, a poisoned past can make one overlook the potential of a strong turnaround.
Three ‘growth’ stories
- Airtel Africa (AAF) – mobile data and in particular mobile money fintechs are experiencing explosive growth in Africa, an area that massively lags the rest of the world in terms of mobile communications and associated apps. So there are strong drivers at the core of this business, but micro and macro issues threaten to overshadow this making investment here higher-risk. The shares are on a low rating, but this reflects a balance of macro positives and risks.