Podcast Summary
An Unconventional Investor's Journey: Laura Gerritts of Rondial Global Advisors: Laura Gerritts, an experienced investor with a deep understanding of global economies and cultures, believes that now is an intriguing time to consider investing in underperforming foreign stocks.
Laura Gerritts, the founder, CEO, and Chief Investment Officer of Rondial Global Advisors, is a highly international investor with an unconventional lifestyle. She grew up in the American Midwest but has traveled extensively to over 75 countries in search of great businesses at attractive valuations. Gerritts' extensive travel and voracious reading have given her a deep understanding of various economies and cultures, making her a continuous learning machine. Despite the success of large US tech stocks since 2010, Gerritts believes that now is an interesting time to consider investing in unloved foreign stocks due to their long-term underperformance. Her unique approach to investing and her extensive research make her a valuable source of insights for investors.
Growing up on a farm shaped the speaker's career as an investor: Farm upbringing instilled resilience, long-term perspective, and frugality. Unusual education provided valuable insights.
The experiences and values gained from growing up on a farm, such as resilience, long-term perspective, and frugality, have significantly influenced the speaker's career as an investor. Despite coming from a family that wasn't particularly interested in money or finance, the speaker's natural aptitude for numbers and enjoyment of games led her to develop good financial habits at a young age. Her unusual education in history, political science, and East Asian languages and culture provided her with valuable insights into social and economic structures, which proved beneficial in her future career as a money manager. The speaker's experiences demonstrate that seemingly unrelated experiences and education can set one up for success in unexpected ways.
Unconventional education and language skills set apart investors: An unconventional education and language skills can provide unique insights and opportunities in investing, despite initial challenges.
Having a unique educational background and perspective can set you apart in industries like investing. The speaker, who studied Japanese in rural Kansas during a time of globalization, recognized the importance of international education and language skills in differentiating himself. Despite not initially falling in love with the culture, he later found that his experiences in Japan repaired him for his career. He also emphasized the importance of liberal arts education and self-driven learning, which helped him hustle and seek knowledge. The speaker's parents' experiences studying abroad also influenced his worldview and desire to understand the world. While he initially faced disadvantages in the industry due to his unconventional education, he eventually used his chip on his shoulder as motivation to succeed. Ultimately, his willingness to seek knowledge and experiences from different perspectives set him apart and contributed to his success.
Learning Fiduciary Responsibility and Empathy from Early Investment Industry Experiences: Early career in investment industry instilled strong sense of fiduciary responsibility and empathy for clients. Humility, hard work, and caring for others' financial futures were valued.
The early experiences of working in the investment industry, particularly as a bilingual investor relations representative during the late 20th century, instilled a strong sense of fiduciary responsibility and empathy for clients in the speaker. Surrounded by a unique group of people in Kansas City, the speaker learned the importance of humility, hard work, and caring for others' financial futures. Despite dealing with unhappy clients and low returns during market downturns, the speaker remained dedicated to doing what was best for the clients, recognizing that their money and future goals were at stake. This experience shaped the speaker's perspective on the industry and continues to motivate them to prioritize clients' needs over their own desires for wealth and status.
Growing up in rural areas instilled values of authenticity and community: The speaker values authenticity and community over wealth and was influenced by experiences with individuals and organizations that prioritized morality and clients' needs.
The speaker values authenticity and community over flashy displays of wealth, which was instilled in them growing up in rural areas like Kansas City and Western Kansas. This philosophy was further reinforced by their experiences with individuals and organizations, such as Grandeur Peak and Wasatch, that prioritized morality, taking care of their clients, and acting in the best interests of their communities. The speaker's experiences have shaped their perspective and led them to appreciate the importance of humility, generosity, and putting the needs of others before their own. The speaker's connection to these values has been a constant thread throughout their life, and they consider themselves an honorary member of the cultures that embody them.
Importance of humility, respect for clients, and global perspective in fund management: Identifying a good fund manager involves assessing their discipline, process, and team dynamics. Humility, respect for clients, and a global perspective are key qualities. Women in the industry face unique challenges.
Identifying a good fund manager is a challenging task due to the complexity of assessing their discipline, process, and team dynamics from an outside perspective. The speaker's experience of working in an out-of-favor asset class and observing good investors in her life emphasized the importance of humility, respect for clients, and a global perspective. The speaker's success in getting a job at American Century in 1999, despite being a woman and having no accounting background, was due to her ability to think globally and having a unique perspective on Tiffany's Japanese consumer market. The speaker also shared the story of a female colleague who was penalized for being honest about her working hours, highlighting the challenges women faced in the industry. Overall, becoming a successful investor requires hard work, being in the right place at the right time, and overcoming structural challenges.
Exploring cultural differences and personal growth through international trading: Start trading with a purpose, use Monarch Money for finance tracking, and learn from industry experts through 'The Holy Grail of Investing'
International trading offers unique rewards beyond monetary compensation, such as cultural exploration and knowledge gain. The speaker started trading with a greater purpose of creating a role model in the industry, despite the challenges of scaling up and earning significant income. They also noted a decrease in the number of women in their industry and saw a need for change. The importance of tracking finances was emphasized, with Monarch Money being recommended as a top-rated personal finance app for seamless and easy tracking. Lastly, "The Holy Grail of Investing" by Tony Robbins and co-authors was introduced as a resource for learning about alternative investments and strategies from industry titans.
Navigating the Business World as a Woman: Seeking the Right Environment and Mentors: Embrace female strengths, find supportive male mentors, and value caution and resilience for success in the investment industry.
The business world can be draining for women due to the prevalence of alpha male personalities who prioritize image over substance. These personalities, who may not be as successful as they appear, can create an environment that feels controlling and stifling for women. However, seeking out great male mentors and partners, as well as embracing one's own risk-averse tendencies, can lead to success and fulfillment in the industry. The importance of being shaped by the right environment and mentors cannot be overstated, as they can help investors develop the resilience and temperament needed to navigate market changes. As the investment landscape shifts, it's crucial for investors to adapt their mindset and reconsider the value of cash and caution in a world where risk may no longer be rewarded.
Historical market performance shifts between US and emerging markets: Since 2010, the US market has outperformed emerging markets, but history shows cycles shift, and potential benefits could come from decreasing interest rates and underallocated emerging markets investments.
The underperformance of emerging markets in comparison to the US market since 2010 has been significant, but history shows us that these cycles shift. From 1999 to 2010, emerging markets outperformed, and before that, from 1994 to 1999, the US did. The dominance of the US market in recent years can be attributed to the control of global central banks over interest rates, which benefited large, established companies in the biggest economies. However, if interest rates were to decrease, the wealth effect could benefit emerging markets, potentially leading to a shift in market performance. Additionally, allocations to emerging markets have dwindled due to the prolonged period of US market growth, leaving room for potential growth in this sector.
Missing out on global opportunities with a US-heavy portfolio: Investors may limit their growth potential by holding less than a third of their equity allocation in overseas markets, particularly in China, despite its significant role in the global economy and potential opportunities for strong companies with good fundamentals.
The investment landscape is subject to change, and diversification becomes increasingly important during times of uncertainty. US investors holding only a sixth of their equity allocation in overseas markets, particularly in China, which makes up a large portion of the MSCI emerging markets index, may be missing out on opportunities. Despite concerns over China's economic challenges, including demographic issues, government policies, and debt problems, some investors believe that good companies with strong fundamentals can still grow in this environment. The process of investing in global markets involves identifying companies that can grow thoughtfully over time, have good capital allocation, and buy back shares based on dividends. The current situation in China may present challenges, but it's essential to remember that these issues are not unique to China and are part of a larger global trend. Investors should remain focused on finding companies that fit their quality and transparency criteria and are likely to survive in any economic landscape.
Identifying high-quality businesses through bottom-up analysis: Successful investing requires identifying undervalued businesses with strong financials, including reasonable leverage, acceptable debt levels, recurring revenue, and stable or durable growth.
Successful investing involves identifying good businesses with strong financial characteristics, even in challenging economic conditions. This approach has proven effective in various markets, including China during times of consolidation and in countries that are out of favor. The investment process begins with a bottom-up screen of over 70,000 companies worldwide to identify underpriced or overpriced stocks. The balance sheet analysis is a crucial first step, focusing on reasonable leverage, acceptable debt levels, and recurring revenue. Cash flow usage, margins, and stable or durable growth are also essential factors. By applying these principles, investors can whittle down the world's companies to a select few of high quality. This iterative process helps guide investors and keep them out of trouble by focusing on companies with strong fundamentals.
Investing with a global perspective: Grandeur Capital's unique approach involves extensive travel and firsthand insights to gain a deeper understanding of companies and markets
The investment approach of Grandeur Capital involves a meticulous, systematic process of screening companies, narrowing down the list to a target range, and then traveling extensively to gain firsthand insights and pattern recognition. This unique approach, which combines rigor with flexibility and creativity, sets Grandeur Capital apart in the investment industry. The firm's founder has visited over 75 countries, observing business trends and consumer behavior, and has even lived in some of these countries for extended periods. These experiences have provided valuable insights that cannot be gleaned solely from reports or data. By immersing himself in the local economies and cultures, the investor gains a deeper understanding of the companies and markets, enabling him to make informed investment decisions.
Leveraging cultural understanding for business advantage: Immersing in local cultures and respecting values enhances investment success. Adapt to priorities and speak on company's terms for effective global business.
Having a deep understanding of different cultures and operating in the local time zones can significantly enhance one's competitive advantage in business. This was evident in the speaker's personal experiences of spending extended periods in various parts of the world, including Africa, Asia, and Europe. By immersing themselves in these cultures and learning about local priorities and values, the speaker was able to approach investments with a unique perspective and cut to the chase of what makes the investment tick. This approach also involved respecting local cultures and speaking on the company's terms rather than imposing one's own values. The speaker emphasized the importance of this approach for businesses looking to succeed in countries like India, where respecting local culture and values is crucial. The speaker also touched upon the differences in priorities between Japanese and US companies and the importance of understanding these differences to make informed investment decisions. Overall, the speaker's approach to global investing was characterized by a deep respect for local cultures and a willingness to learn and adapt to new environments.
Expanding Our Understanding of the World: Traveling and reading broaden our horizons, reveal cultural nuances, and emphasize the importance of humility and continuous learning.
Our understanding of the world is limited, and we can expand our knowledge by traveling and reading to discover new perspectives and uncover hidden complexities. The speaker shares an anecdote about a foreign investor in Japan who underestimated the importance of cultural nuances and the need for humility. They also discuss the idea of the world as a series of nesting dolls, with each layer revealing new depths of ignorance and knowledge. The importance of being open-minded, humble, and continuously learning from others is emphasized. Traveling and reading are powerful tools to broaden our horizons and discover missing puzzle pieces in our understanding of the world.
Maximizing Vacation Home Ownership and Real Estate Investment: Vacasa helps homeowners earn significant revenue through full-service vacation home management. Real estate market presents investment opportunities, with Fundrise expanding its portfolio. Starting and growing a business is simplified with Shopify's tools and support. Intentional reading broadens perspective and offers valuable insights.
Effective vacation home ownership can be a reality with the help of companies like Vacasa. They offer full-service vacation home management, ensuring easy maintenance, data-driven bookings, and around-the-clock support, allowing homeowners to earn significant revenue. Meanwhile, the real estate market presents opportunities for investment despite challenges, as demonstrated by Fundrise's plans to expand its portfolio. Furthermore, starting and growing a business is made easier with platforms like Shopify, which offers comprehensive tools and support. Lastly, intentional reading, or revisiting favorite books, can provide valuable insights and help broaden one's perspective. These insights offer various ways to approach financial growth and success.
Exploring the World Through Reading: Reading widely and deeply in various genres and topics enriches our understanding of the world and ourselves. Immerse in subjects and appreciate the beauty of language and insights from different cultures.
Reading broadly and deeply, in various genres and topics, can enrich our understanding of the world and ourselves. The speaker shares their personal experience of combining rereading of beloved literature with new discoveries in various fields, from economics and politics to craftsmanship and historical fiction. This approach allows for a more holistic view of a topic, as well as a deeper appreciation for the beauty of language and the insights that different cultures and perspectives can offer. Additionally, the speaker emphasizes the importance of slowing down and immersing oneself in a subject, drawing parallels between the craftsmanship of artisans and the qualities of great businesses. Overall, reading is a door to new experiences and ideas, and can help broaden our horizons and inspire creativity.
Exploring beyond the narrow focus for unique insights: Read widely, travel, and explore various topics to gain unique insights beyond quarterly reports or spreadsheets, leading to discoveries and deeper understanding of the world.
Making things that endure, whether it's a fund, a painting, or a body of knowledge, requires great care and a broad perspective. The speaker emphasizes the importance of reading widely, traveling, and exploring various topics to gain unique insights that go beyond the narrow focus of quarterly reports or spreadsheets. This approach has led to discoveries such as the impact of US oil production on global trade and the economy. The speaker also highlights the value of consistent learning and exploration with colleagues, whether through podcasts, courses, or books. By combining careful analysis with a free-wheeling, creative approach, one can uncover connections and insights that lead to a deeper understanding of the world.
Enduring difficult times and staying disciplined: Resilience and discipline are crucial for successful investing. Learn from history, focus on your investment philosophy, and trust the process despite setbacks. Make time for focused thinking and analysis to make informed decisions.
Resilience and discipline are key components for successful investing. This means having the ability to endure difficult times, staying true to your investment philosophy, and trusting the process even when it seems to be failing. Reading and learning from history can also help build resilience and enable us to handle adversity. Additionally, intentionally leaving time in our lives for focused thinking, reading, and analysis is essential for making informed investment decisions. As the speaker mentioned, it's easy to get overwhelmed with complexity and distractions, but staying focused and disciplined can lead to long-term success. The speaker's own experience of persisting through difficult periods, such as the 12-year slump in emerging markets, is a testament to the importance of these qualities.
Introverts thrive in investing industry due to focus and research skills: Introverts' ability to focus deeply and research effectively makes them valuable contributors in the investing industry. Interruptions and distractions can hinder productivity, so introverts may prefer to work independently with fewer external commitments.
Introverts, who are often drawn to investing, can thrive in the industry due to their ability to focus deeply on research and analysis. Interruptions and distractions can significantly impact productivity, with each interruption taking up to 24 minutes to overcome. Therefore, introverts may prefer to work independently, with fewer external commitments and a clear focus on their investments. During times of reduced complexity, such as the COVID-19 pandemic, introverts may find it easier to focus on their work and make progress on long-term projects. Additionally, having a supportive partner who understands and respects their work schedule can contribute to their success. Overall, introverts' unique strengths and work styles can make them valuable contributors to the investment industry.
Finding Peace through Disconnection: Intentional disconnection from technology and material possessions can lead to a peaceful and productive life. Filter technology use and limit distractions to make the most of valuable time.
Intentional disconnection from technology and material possessions can lead to a peaceful and productive life. The speaker shares his experiences of downsizing and finding solace in places like Utah, Kyoto, and Australia, where he can focus on reading, writing, and thinking. He emphasizes the importance of filtering technology use and limiting distractions to make the most of valuable time. The speaker's life philosophy aligns with that of figures like Pico Iyer, who also prioritize simplicity and disconnection. Overall, the conversation highlights the importance of creating an intentional and distraction-free environment to foster creativity, focus, and personal growth.
Utilizing Technology for Informed Decisions and Minimizing Distractions: Successful investor Laura Garrett uses technology to build detailed models, predict trends, and eliminate monotonous tasks. She avoids perishable information sources and uses social media selectively to focus on long-term strategies.
Laura Garrett is a successful investor who effectively utilizes technology to make informed decisions while minimizing distractions. She builds detailed models to predict future financial trends and eliminates monotonous tasks. Garrett also consciously avoids perishable information sources like daily news and social media to focus on longer-term strategies. Despite the industry's push towards social media for content consumption, she uses it selectively and prioritizes trustworthy sources. Her approach to investing is characterized by the art of subtraction, focusing on what truly matters.
Focusing on Big Rocks: Prioritizing Long-Term Goals: Identify and prioritize long-term goals, eliminate distractions, and delegate or eliminate tasks that don't align with your core values to achieve success, happiness, and abundance.
Prioritizing what truly matters in life and minimizing distractions are essential for achieving success, happiness, and abundance. This concept, known as the paradigm of big rocks and little rocks or gravel, was discussed using the analogy of filling a jar with big rocks (long-term goals) first before adding smaller gravel (distractions). The speaker acknowledged the challenge of maintaining focus and reducing distractions, especially with increasing opportunities and information in today's complex world. To be successful, it's crucial to identify and focus on one's core strengths and values, and delegate or eliminate tasks that don't align with those priorities. By doing so, individuals can effectively reach their goals and find their "paradise," or sense of fulfillment and purpose.
Living intentionally and enjoying the present: Focus on what you love, be present, and find joy in the moment. Balance technology with mindfulness practices.
Time is finite, and it's essential to focus on the things we love and enjoy in life by subtracting unnecessary complexities. The speaker emphasizes the importance of being present and content in the moment, rather than constantly fixating on the future. Meditation and experiences in different cultures have helped her in this regard. Technology, while a part of our lives, should be balanced with practices that promote being present. The speaker values simplicity and mindfulness, having learned to prioritize what truly matters to her. Overall, the conversation highlights the importance of living intentionally and finding joy in the present.
The Power of Storytelling and Intentional Learning: Laura Gerrits' podcast, 'Pico,' inspired a listener's intentional reading practice and appreciation for deeper thinking. The podcast's impact was felt even in a dangerous war zone, showcasing the power of storytelling to inspire and connect people.
Laura Gerrits' podcast, "Pico," inspired a listener named William to rekindle his intentional reading practice and appreciate the deeper thinking it enables. He admires Laura's career, which aligns her passions for continuous learning, reading, travel, and stocks. William envies her success and looks forward to the potential book she may write someday. Additionally, William shared his own experience of listening to the podcast while serving as a soldier in a dangerous war zone. The podcast provided moments of wisdom amidst the chaos and danger, and William wished for peace for all listeners. Overall, the conversation highlights the impact of intentional learning and the power of storytelling to inspire and connect people.
