Investment journal

Monetary policy is one of the underlying factors that influences the path of equity price returns. This is because monetary policy is responsible for the prevailing level of interest rates, which in turn shape investors’ required return expectations,...

One of the topical subjects in the investment industry is the inflationary outlook. Inflation is an important factor because it determines the discount rate on investment asset classes, with higher inflationary expectations leading to higher return expectations...

As the investment climate evolves, and we are now midway through the year, clients have expressed interest in our outlook and portfolio positioning. Our current views remain similar to our views in past instalments, with most investors now realizing that...

In past installments, we distinguished between our definition of risk compared to volatility. Risk, is the degree of uncertainty embedded in a company’s business model. If this uncertainty enlarges due to the timing or the realization of profits or cash...

In this installment of our investment journal, we would like to discuss demographic shifts within the investments industry. Over the next 20 years, it is estimated that there will be a $68 trillion inheritance transfer from Baby Boomers to Millennials...

Valuation is principally important for several reasons: First, valuation tells us what expectations have been incorporated into the market. Given our focus on identifying high quality companies, we want to assess which of these high quality companies...

On May 15th, 1997, Amazon became a public company at a price of $18/share. $10,000 of seed capital invested in 1997 would have grown to $12 million as of May 2020. This example highlights the power of secular growth. Rather than trying to time the markets...