Todd Morris and Daniel Fields of Polen Capital Management - Investing in High-Quality International Stocks

Orion's The Weighing Machine

With some of the best, most innovative, and well-run businesses located beyond U.S. borders, limiting one's investments to the domestic market may inadvertently limit their portfolio's potential growth. While the world's economic activity is dynamic and diverse, smart investors are now exploring opportunities in previously seen as distant and foreign markets.

In this episode, Rusty and Robyn talk with Daniel Fields and Todd Morris, portfolio managers and analysts at Polen Capital Management. Before joining Polen Capital, Daniel spent eight years in Hong Kong, working for Gavekal Capital and Marshall Wace LLP as a research analyst evaluating Asian growth companies. Todd worked in research and marketing roles with Prudential Insurance and Millennium Global Asset Management, respectively, and served in the U.S. Navy for seven years.

Managing Polen Capital's international growth strategy, Daniel and Todd discuss with Rusty and Robyn the case for high-quality and international investing. They emphasize the importance of investing outside the United States. They also highlight the potential for international outperformance in the future, as well as the attractive valuations currently available in international markets.

Key Takeaways

• [03:21] - Daniel and Todd's personal and professional backgrounds.
• [04:35] - An overview of Polen Capital's culture and what makes it unique.
• [05:45] - What compounders are and why they are important for investing.
• [08:00] - Why Polen Capital invests in concentrated portfolios.
• [08:48] - What Polen Capital's article, “Hidden in Plain Sight” is all about.
• [10:59] - How Polen Capital specifically defines high-quality companies.
• [13:11] - Potential catalysts for the dollar to weaken.
• [15:24] - Key takeaways from Polen Capital's “Opportunity Beyond Borders” article.
• [17:21] - Recommended allocation for non-U.S. securities.
• [19:34] - Daniel and Todd's take on how AI impacts the markets and financial advice.
• [21:19] - How Daniel and Todd maintain their physical and mental energy to perform at their best.
• [22:32] - The people Daniel and Todd are thankful for professionally.
• [24:47] - Daniel and Todd's recommendations for content.

Quotes

[08:33] - "We feel that concentration specifically among high-quality, profitable businesses offers the best odds of success over the long run. And so that is very central to how we think and operate as investors." ~ Todd Morris

[09:02] - "If you're not investing outside the United States, you're missing out on a whole lot of really good companies. Some of the best, most innovative, and well-run businesses are located outside the United States." ~ Daniel Fields

[15:42] - "More than 75% of global activity is happening outside the United States. And while a US-centric or a US-biased allocation has been sensible and has worked well for the last 15 years, that may not always be the case. We should all remember that much of the world's economic activity is happening outside our borders." ~ Todd Morris

Links

• Daniel Fields on LinkedIn
• Todd Morris on LinkedIn
• Polen Capital
• Neighborhood #1 by Arcade Fire
• Thunderstruck by AC/DC
• Aon
• Fisher Investments
• Gavekal Capital
• Hidden in Plain Sight
• Opportunity Beyond Borders
• John Wooden
• James Stockdale
• Louis-Vincent Gave
• Alfred Ho
• The New Map
• The Economist
• Admiral Chester Nimitz
• The World For Sale

Connect with Us

• Meet Rusty Vanneman, Orion's Chief Investment Officer
• Check Out All of Orion's Podcasts
• Power Your Growth with Orion

3129-OPS-11/17/2023