Viewpoint

Portfolio manager Ed Walczak shares his thoughts on his trip to the Berkshire Hathaway annual meeting, his 30 th visit. He focuses on investing versus speculating in today’s AI-obsessed market, and how sticking to a discipline might be harder but more important than ever.

Markets have held up surprisingly well, even as pressures build beneath the surface. Since the war in the Middle East began in February, investors have had to contend with rising energy prices, renewed inflation concerns, and a quasi-U-turn in monetary policy expectations.

Like oil once powered the industrial era, chips have become a key input powering broad economic activity, with expectations for demand to continue through 2026 and into 2027. In our view, “picks-and-shovels” companies should benefit regardless of which model, hyperscaler, or foundation lab ultimately wins.

Galderma is a pure play dermatology company with steadily growing aesthetics and skin care franchises. Galderma’s Dysport is taking share from Botox, while Nemluvio, its novel itch biologic, is gaining traction. We believe the company may see long term revenue and profit growth ahead. Turns out, demand for better skin is remarkably durable.

The surge in electricity demand exposes aging power networks as the weak link in electrification. Underinvestment, congestion, and climate stress are colliding with a rising share of renewables and power-hungry data centers. This makes grid modernization, storage, and resilience a defining, long-term investment opportunity.

Emerging markets have just weathered two major global shocks — and have come out on top. We believe this is no accident. Many investors missed the post-Liberation Day rebound by staying anchored in a framework that may no longer describe the emerging-market universe. The same misreading risks compounding potential portfolio under-exposure today.

After years of climate taking center stage in impact investing, the social side of the coin is starting to receive more investor attention. Find out what’s been driving the increased interest, and why the timing matters.

Markets have bounced back to pre-conflict highs. The Conviction Equities and Multi Asset boutiques share their views on why this signal may be worth paying attention to.

Energy sovereignty efforts and competitiveness are fostering the transition from a system based on finite, extracted resources with volatile prices to one centered on generated technologies with decreasing costs as production scales. Investing in the full spectrum with an active approach offers the opportunity to accelerate the transition and share in its rewards.

Korea’s governance reforms tackle the 'Korea discount' by enhancing transparency and minority shareholder rights. Measures like mandatory treasury share cancellations and stronger board independence aim to unlock corporate value and drive fairer valuations. A pivotal step toward more equitable markets.

Markets today resemble Aesop’s fable The Boy Who Cried Wolf, with many investors conditioned to dismiss risks after years of shallow, short-lived downturns and swift recoveries fueled by central bank interventions. We believe this complacency has led to higher valuations and reduced defensiveness, creating structural fragility.

Artificial intelligence (AI) may be one of the greatest technological breakthroughs, but it’s too early to tell. History shows that investment returns don’t always match innovation hype. However, we do know that economic fundamentals have not changed, which means that investments must become self-financing and deliver adequate returns to be sustainable.