In the face of rising volatility and growing concerns around a potential trade war, resilience is more important than ever.
Appearing on ausbiz with Andrew Geoghegan, Alvia’s Portfolio Manager Chris Scarpato, discusses why legacy infrastructure assets continue to play a key role in our portfolios. In uncertain markets, businesses with strong incumbency, pricing power, and hard asset backing tend to hold their ground – and often thrive.
Chris highlights Dalrymple Bay Infrastructure (ASX: DBI) as a local example. Its take-or-pay revenue model ensures a stable cash flow profile, largely insulated from fluctuations in volume – a valuable trait when markets are on edge.
Looking abroad, Chris also discusses US railroads such as CSX (NASDAQ: CSX), where the high replacement cost and entrenched infrastructure provide durable competitive advantages. These are capital-intensive assets that can’t be easily replicated – and that’s part of what makes them compelling.
At Alvia, we continue to focus on quality, resilience and capital discipline – especially when the headlines get noisy.