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/