161 episodes

Listen as Mawer Investment Management Ltd. takes a deeper dive into the investment philosophy and strategies that have helped put the odds in their clients’ favour for over 50 years.

Art of Boring Mawer Investment Management Ltd.

    • Business
    • 4.7 • 82 Ratings

Listen as Mawer Investment Management Ltd. takes a deeper dive into the investment philosophy and strategies that have helped put the odds in their clients’ favour for over 50 years.

    Quarterly Update | Q2 2024

    Quarterly Update | Q2 2024

    Portfolio Manager Crista Caughlin discusses the economy and factors that drove markets in the second quarter of 2024.

    Key points from this episode:
    Because inflation is easing at a gradual pace, central banks with likely be cutting rates gradually. We are at the end of a global tightening cycle and starting to see countries tweak their policies to better fit their domestic markets, but there is not and likely won’t be, a material divergence in the path forward among central banks. The yield curve has been inverted for almost two years, which is longer than average. However, it's not the longest inversion on record. In the late 80s, the yield curve remained inverted for over two and a half years before a recession. In continuation of the first quarter, equity markets did quite well again, with most reaching new highs during the quarter. The strength was primarily driven by a narrow segment of the market, notably technology. From an asset mix perspective we continue to be neutral equities, overweight bonds, and underweight cash.

    Host: Kevin Minas, CFA, MBA, CAIA, Institutional Portfolio Manager
    Guest: Crista Caughlin, CFA, Portfolio Manager

    For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/quarterly-update-q2-2024

    This episode is available for download anywhere you get your podcasts.
    Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.
    Follow us on social:
    LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
    Instagram - https://www.instagram.com/mawerinvestmentmanagement/
    Twitter - https://www.twitter.com/mawer_Invest

    • 14 min
    Navigating the U.S. Mid-Cap Landscape: Resilience Amid Uncertainty

    Navigating the U.S. Mid-Cap Landscape: Resilience Amid Uncertainty

    In this episode, Portfolio Manager Jeff Mo makes the case for investing in U.S. mid-cap equities, highlighting the country’s strong business environment, large domestic market, and GDP growth. He discusses current market trends, including artificial intelligence, and his team’s risk management evaluation, especially with a pivotal U.S. election looming on the horizon.  
    Key points from this episode:
    The U.S. is an attractive market for investing due to its strong rule of law, business environment, and large domestic market. Mid-caps are an investing sweet spot. While smaller companies struggle to gain competitive advantages, mid-caps have similar competitive advantages as large caps but with much more attractive growth profiles. There is one dominant theme right now in the market, which is artificial intelligence and anything related to that, all the way down to companies that are building HVAC systems for data centers. With risks like elections, the team goes through the portfolio company by company to evaluate potential changes as a result of an administration change. In thinking through the risks as part of their ongoing risk management exercise, the portfolio appears resilient, prepared, and diversified for many different scenarios, including different election outcomes.  
    Host: Rob Campbell, CFA, Institutional Portfolio Manager
    Guest: Jeff Mo, CFA, Portfolio Manager
    For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/navigating-the-u-s-mid-cap-landscape-resilience-amid-uncertainty-ep160
    This episode is available for download anywhere you get your podcasts.
    Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.
    Follow us on social:
    LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
    Instagram - https://www.instagram.com/mawerinvestmentmanagement/
    Twitter - https://www.twitter.com/mawer_Invest

    • 20 min
    From Buy to Bye: Sell Discipline and Overcoming Behavioral Biases

    From Buy to Bye: Sell Discipline and Overcoming Behavioral Biases

    In this episode, Portfolio Manager Jeff Mo discusses common behavioral biases that can hinder clear sell decisions, and the tools, such as checklists and trigger points, that can help slow down emotional thinking. He provides examples of companies that he and his team properly exited based on changing fundamentals as well as those they may have held onto for a bit too long, proving the power of the endowment bias.

    Key points from this episode:
    Mawer’s sell discipline mirrors the inverse of its buy criteria: wealth creation, management quality, and discount to intrinsic value. The endowment bias makes it difficult to sell stocks you already own; try to always consider your holdings, and don't get married to them. Valuation is not the most important plank of Mawer’s sell discipline framework. Wealth creation and excellent management teams come first. While some believe the worst sell misses are the ones that have gone down considerably, Jeff believes the worst ones are actually the ones that go nowhere. It is important to weigh the inductive evidence a little bit more than the deductive evidence, but this can be difficult to do when it's a company that has done well. Warren Buffett once said that the preferred holding period is forever. However, not everything in life goes as you’d prefer, and that’s where sell discipline comes into play. Checklists and trigger points are a great way to think systematically and to slow down the process, helping take the emotion out of sell decisions. Host: Rob Campbell, CFA, Institutional Portfolio Manager
    Guest: Jeff Mo, CFA, Portfolio Manager

    For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/from-buy-to-bye-sell-discipline-and-overcoming-behavioral-biases

    This episode is available for download anywhere you get your podcasts.
    Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com. Follow us on social:
    Twitter - https://www.twitter.com/Mawer_Invest
    LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

    Instagram - https://www.instagram.com/mawerinvestmentmanagement/

    • 31 min
    Watts Up? The Challenges and Opportunities of Powering AI

    Watts Up? The Challenges and Opportunities of Powering AI

    In this episode, we explore the growing electricity demands of data centers stemming from artificial intelligence (AI) with Chris Silvestre, Analyst on the U.S. Equity Team. He shares insights from a recent research trip visiting data centers in Northern Virginia—the data center capital of the world—and discusses challenges around meeting demands given constraints of land availability, energy generation and transmission, and the significantly increased power demands required to develop large language models.
     
    Key points from this episode:
     
    • Electricity demand in the U.S. has been relatively flat for a decade but is expected to increase 25% by 2050 due to electrification, ESG goals, and data center expansion to meet AI demand.
    • For the same footprint and the same data center, you need 10 times more power for AI workloads than you did for the old-style data centers.
    • Data centers cluster organically in hubs, such as Northern Virginia, to minimize data transfer costs, but this clustering strains power infrastructure.
    • Meeting increased data center capacity demands faces land and energy constraints. While the U.S. has the ability to generate power, it may not have it in the right spots at the right time to support this new incremental demand.
    • Businesses are proactively responding to increased demand by signing deals to secure data center capacity despite constraints, while governments are implementing policies and reforms to support AI development.
    • With respect to AI or high-performance computing, there is a sense that this is a priority and will be a matter of national interest if not national security.
     
    Host: Andrew Johnson, CFA, Institutional Portfolio Manager
    Guest: Chris Silvestre, CPA, CFA, Equity Analyst
     
    For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/watts-up-the-challenges-and-opportunities-of-powering-ai-ep158
     
    This episode is available for download anywhere you get your podcasts.
     
    Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.
     
    Visit Mawer at https://www.mawer.com.
     
    Follow us on social:
     
    Twitter - https://www.twitter.com/Mawer_Invest
     
    LinkedIn -
    https://www.linkedin.com/company/mawer-investment-management/
     
    Instagram - https://www.instagram.com/mawerinvestmentmanagement/

    • 27 min
    Navigating Global Small Caps in an AI-Transformative World

    Navigating Global Small Caps in an AI-Transformative World

    Portfolio Manager Karan Phadke discusses his views on the global markets and the performance of the global small-cap portfolio. He illustrates how businesses are adapting to and utilizing artificial intelligence (AI), highlighting the difference between the value-added reseller and IT consultant business models. Two portfolio holdings, CBIZ and Convatec, are discussed to demonstrate the team's focus on well-run, resilient companies that are trading at reasonable valuations.

    Key points from this episode:
    The U.S. remains a strong outperformer, while Europe continues to see more sluggish growth. Current portfolio strengths include resilient U.S. companies, particularly in the professional employer organization (PEO) space with companies that provide outsourced HR functions. AI is impacting businesses in three main areas: hardware, software, and services. The team focuses on services, which is comprised of companies that help their clients acquire and integrate the hardware and software to use AI effectively. Regarding generative AI, there's still a very heavy lift involved at the onset to get the data clean and ready to use. When looking at the strategy from the top down, the team seeks out resilient businesses trading at reasonable valuations that are well-run with strong managers who are reinvesting capital intelligently. CBIZ exemplifies the strategy's focus on well-run companies with recurring business models while Convatec represents a business with solid management and long-term growth potential. Host: Andrew Johnson, CFA, Institutional Portfolio Manager
    Guest: Karan Phadke, CFA, Portfolio Manager
    For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/navigating-global-small-caps-in-an-ai-transformative-world-ep157
    This episode is available for download anywhere you get your podcasts.
    --
    Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.Follow us on social:
    Twitter - https://www.twitter.com/Mawer_Invest
    LinkedIn - https://www.linkedin.com/company/mawer-investment-management/ 

    • 16 min
    U.S. equity: Capitalizing on innovation and protecting against pitfalls

    U.S. equity: Capitalizing on innovation and protecting against pitfalls

    In this episode, Portfolio Manager Colin Wong shares strategic insights on disruptive technologies and recent adjustments in the U.S. equity portfolio. Colin discusses how his team navigates market exuberance, consensus risks, and economic ebbs and flows with a focus on resilient returns. Through compelling examples, Colin provides actionable insights on benefitting from innovation without betting the farm on a single theme.

    Key points from this episode:
    The three main sources of stock market return are earnings per share growth, multiple expansion, and dividends. Similar to the Internet in the late 90s/early 2000s, artificial intelligence (AI) has the potential to transform almost every industry and sector. However, some companies are currently only using AI for various smaller tasks, such as answering simple customer queries, while others have fully embedded AI into their products. The U.S. equity team invests in companies with profitable existing businesses that are also investing in the future, namely AI. An influx of infrastructure spending in the U.S. not only provides upside to the businesses in the portfolio but also serves as a significant source of downside protection. Intuit and Nike are examples of Mawer’s investment philosophy at work, one of which was recently exited and the other recently purchased. Host: Andrew Johnson, CFA, Institutional Portfolio Manager
    Guest: Colin Wong, CFA, Portfolio Manager

    For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/u-s-equity-capitalizing-on-innovation-and-protecting-against-pitfalls-ep156
    This episode is available for download anywhere you get your podcasts.
    --
    Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at www.mawer.com.

    Follow us on social:
    Twitter - https://www.twitter.com/Mawer_Invest
    LinkedIn - https://www.linkedin.com/company/mawer-investment-management/ 

    • 16 min

Customer Reviews

4.7 out of 5
82 Ratings

82 Ratings

TPN.8 ,

Masterclass at Mawer

I have been reading their articles and investing in Mawer for almost 15 years. Their discussions are easy to follow and understand. I highly recommend to anyone especially for new investors on a topic many believe to be too daunting to understand.

abdy4 ,

Abdy

I love this. It is so easy to follow along especially for someone who doesn’t have a financial background.

Baronialists ,

Very informative

Great presentation and consideration. Fantastic conversation and thoughts. Be Boring. Make Money!

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