Art Of Boring

In this episode, we discuss the global equity strategy with Christian Deckart, chief investment officer and portfolio manager at Mawer. Christian stresses managing absolute risk over relative risk for better long-term outcomes and details Mawer’s approach to risk management, focusing on decision-making, portfolio risks, and external factors such as government debt and rising rates. He also discusses adapting to AI trends, preferring companies leveraging AI applications over infrastructure investments. He emphasizes maintaining focus on fundamentals amid evolving global and technological landscapes. Key Takeaways: Effective risk management begins with a sound decision-making culture, clear accountability, and thorough evaluation of securities, portfolios, and systemic exposures to avoid unintended biases. Market and portfolio vulnerabilities include rising government debt, interest rate shocks, hidden real estate losses, over-specialized economies, and investor psychology driven by greed and fear. Disciplined