Last week, Alvia Chief Investment Officer Josh Derrington was featured in The Australian Financial Review discussing the traits that define great long-term investments: pricing power, recurring demand, and the discipline to reinvest.
The AFR article, 11 of the best foreign stocks to buy and hold, highlighted companies that exemplify these qualities. Josh featured alongside other investment managers, sharing insights on businesses with enduring competitive advantages.
Some examples he discussed include:
Prosus – whose stake in Tencent gives exposure to one of the world’s most powerful digital ecosystems.
“The twist is that Prosus itself trades at a discount to the value of its Tencent stake. That creates an embedded margin of safety: you’re buying a world-class Chinese internet business at cents in the dollar.”
Games Workshop – the UK company behind Warhammer. Josh highlighted its extraordinary customer loyalty.
“One investor once described the Warhammer hobby as ‘as addictive as cigarettes’ – not a perfect analogy, but when you see the loyalty and spend per customer, you understand the point.”
Rentokil – a global leader in pest control.
“Step back and the scale advantage is unquestionable. It now operates across 80-plus countries with deep local density in key markets. The underlying business model is built on recurring contracts, mission-critical demand, and pricing power.”
Despite operating in very different industries, these companies share the same DNA: durable business models that compound value quietly over time.
At Alvia, this is exactly the type of business we seek for our clients – enterprises that can grow sustainably, reinvest wisely, and generate genuine long-term wealth.