At present, we have our own version of the “mag seven”, only it’s called the “mag one” – Commonwealth Bank. I cannot remember a time when one stock, in this case Commonwealth Bank, has caused so much angst for fund managers or when one stock can explain such a large proportion of relative underperformance. I don’t know whether it’s in a valuation bubble or not, but it should not matter because as a fund manager, my objective is to achieve the return objectives of the fund and to navigate the nuances of the market.
