IN FO­CUS: CAR­NI­VAL ‘ THE HIGH OIL PRICE HAS MADE ITS SHARES CHEAP’

The Daily Telegraph - Your Money - - FRONT PAGE -

I re­cently bought into Car­ni­val, the world’s big­gest cruise com­pany. It has sev­eral brands. Cruises are very pop­u­lar and very cost-com­pet­i­tive. They ap­peal to an age­ing pop­u­la­tion, but Car­ni­val is quite good at broad­en­ing its au­di­ence.

Re­cently, the stock has not been per­form­ing too well, which is ex­actly why I have bought now – I like to get a good com­pany for a de­cent price. The rea­son for the lack of per­for­mance is the cur­rent high oil price, which has led to a nice op­por­tu­nity. I think Car­ni­val is a great hold­ing, es­pe­cially for people who own shares in BP or Shell, as it will act as a kind of hedge if the oil price falls back.

Cruis­ing is also not an ob­vi­ous busi­ness that will be dis­rupted by the in­ter­net, by giants such as Ama­zon and so on. If any­thing, the in­ter­net will in­crease direct and im­pulse book­ings, which should boost the com­pany’s profit mar­gins.

I think it is a good mo­ment to buy and we are start­ing to see the share price im­prove. We have about 1pc of the fund in­vested in it and are slowly build­ing our po­si­tion. It’s about our 29thlargest hold­ing. We will be keep­ing a close eye on it.

www.tele­graph.co.uk/funds

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