Marbles and Billiards: Navigating the Highs and Lows in Global Equity | EP162

Art of Boring

In this episode, Portfolio Manager Manar Hassan-Agha discusses how the Global Equity Team navigates an exuberant market environment while staying true to Mawer’s disciplined investment approach. He delves into the potential impacts of emerging trends, namely artificial intelligence (AI), and provides examples of the team’s measured approach to evaluating the hype and sustainability of these trends. He emphasizes the value of temperament, alignment, and identifying mispriced high-quality companies. Key points from this episode:

• When considering potential errors of omission, it's a delicate balance between learning and improving while also ensuring you're not learning the wrong things. It's a matrix of good-bad decisions and good-bad outcomes.
• A deep dive on XP
• A deep dive on Robert Half
• We tend to overestimate the effects of new technology in the short term but underestimate them in the long run [Roy Amara], which could potentially apply to the current AI hype.
• The asymmetry today, in our mind, around AI hype is that there's a lot of uncertainty around this, particularly with respect to what's embedded in the prices of stocks. The difficulty continues to be identifying losers versus winners in a longer-term perspective.
• Chasing a theme is very difficult. You must be right on the theme and right on the securities in that theme while also not overpaying relative to the expectations already priced into the theme.

Host: Rob Campbell, CFA, Institutional Portfolio Manager

Guest: Manar Hassan-Agha, CFA, Portfolio Manager For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/marbles-and-billiards-navigating-the-highs-and-lows-in-global-equity-ep162 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.

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