Investor Education

Responsible Investing, ESG, and SRI

Over the past decade, a new sub-industry has developed within the investment community. It operates under a number of names, the broadest of which is Responsible Investing, which incorporates concepts such as ESG (Environmental, Social, and Governance), and SRI (Socially Responsible Investing). At its core, Responsible Investing requires that investors acknowledge a number of issues...

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Diversification: Conventional Wisdom is Misleading

You might be familiar with the expression “don’t put all your eggs in one basket”. We prefer the expression popularized by Warren Buffett: “Put all your eggs in one basket, and then watch that basket very closely.” We firmly believe that despite what you may have been told, simply holding many different equities is not...

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Investing vs Speculating: A Gold Story

Gold is in the news again, having soared 34% to record highs in 2020. Is Globescan Capital buying Gold at these levels? No. Not now, likely not ever. Why not? For the simple reason that we (nor anybody else) really knows what the intrinsic value of Gold actually is. Give us a real asset like...

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Factor Investing: Popular but Flawed

Over the last decade we have witnessed the rise (and fall) of many different investment concepts, as investment firms and academics search for a magic formula that can generate consistent returns, whilst crucially avoiding the hard work that is in reality required to generate those returns. Sadly most realize quickly that there is no...

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GCI: Growth or Value Investors?

A common question we receive is: “Are you at GCI growth investors or value investors?” Prospective clients might look at our portfolio and see holdings such as Microsoft and Mastercard, which have historically traded at price-to-earnings multiples in excess of 35x, alongside holdings such as First American Financial and UPS, which have historically traded at...

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Thoughts on Risk: How to Invest with Uncertainty

So far, the year 2020 has been characterized by volatile swings in share prices as the market comes to terms with the uncertainty surrounding Covid-19, social unrest, and the continuing US/ China trade war. Since its peak in mid-February, the S&P 500 has crashed by 35% and subsequently rallied by almost 50%. Throughout these huge...

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