The most divisive stocks in Australia are not BHP Billiton or Woolworths. They are Transurban, GPT, Sydney Airport and friends, the stocks every value manager loves to hate because of their sensational valuations and flawless share price performance.

Value managers, who invest in the style of Warren Buffett and Benjamin Graham, want to buy something worth one dollar for fifty cents. But as the Reserve Bank of Australia joins almost all of the rest of the world in lowering interest rates even further, it is clear that the world wants more Transurban and fewer government bonds.