For its episode on “The Secret to Finding the World’s Best High Growth Stocks”, Stansberry Investor Hour turned to Polen Capital’s Daniel Fields, Portfolio Manager & Analyst of the International Growth strategy. Fields talks growth investing internationally, navigating China, the role of valuation and the macro in the research process, and why he thinks focusing on one or two big ideas is better than chasing the “hot dot.”
- Fields’ time living in Hong Kong provided invaluable opportunities to dig into the intricacies and nuances of how businesses in China and across Asia operate. He applies this knowledge within the framework of the Polen Capital investment approach.
- Regarding China, he believes it remains a thriving market economy with an entrepreneurial and capitalistic spirit where competition is cutthroat. At the same time, the Chinese Communist Party (CCP) is trying to walk a fine line between regulating the economy and businesses in line with their priorities while reaping the benefits of a free economy. He explains more about why he thinks we’re seeing more brazen policy-making coming from the CCP.
- When it comes to valuation, Fields believes it’s the last step in the investment process and highlights a portfolio example: semiconductor manufacturer ASML Holding and its current valuation. Looking longer-term and in the context of expected earnings growth, valuations appear inexpensive. This example showcases the importance of understanding the business and its growth trajectory first.
- He also describes that Polen’s Large Company Growth Team considers the macro environment within their process, but it is not the primary focus of their research. Within the context of bottom-up, long-term investing, the Team stresses the importance of finding robust, globally diversified companies that can transcend macro issues over time.
- He closes with a final thought citing Charlie Munger, “…too many investors feel like they need to know everything and understand everything, and they’re therefore always chasing the hot dot.” Fields believes deeply understanding one or two big ideas over a long timeframe can help to simplify the noise of investing internationally.
When you extend your time horizon, you’re able to simplify things to focus on the big, long-term ideas.
Please note that this document is a condensed summary of the full interview conducted by Stansberry Investor Hour. There is no guarantee that the investments selected will perform as expected. Some holdings may lose value.
This information is provided for illustrative purposes only. Opinions and views expressed are as of the date of this podcast and may involve a number of assumptions and estimates which are not guaranteed and are subject to change without notice or update. Although the information and any opinions or views given have been obtained from or based on sources believed to be reliable, no warranty or representation is made as to their correctness, completeness, or accuracy. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice, including any forward-looking estimates or statements which are based on certain expectations and assumptions. The views and strategies described may not be suitable for all clients. This document does not identify all the risks (direct or indirect) or other considerations which might be material to you when entering any financial transaction.
This information should not be construed as a recommendation to purchase, hold or sell any particular security. Holdings are subject to change without notice. There is no assurance that any securities discussed herein will be in the portfolio at the time you review this podcast or that any securities sold have not been repurchased. The securities discussed do not necessarily represent the entire portfolio. It should not be assumed that any of the securities, transactions or holdings discussed were or will prove to be profitable or that any investment recommendations we make in the future will equal the investment performance of the securities discussed herein. For a complete list of Polen Capital’s past specific recommendations for the last year, please contact [email protected]. Past performance does not guarantee future results and profitable results cannot be guaranteed.