In this episode, U.S. equity portfolio manager Grayson Witcher explores what it means to invest exclusively in American businesses at a time when the U.S. is becoming more short‑term, more transactional, and more central to global change. He contrasts a shifting U.S. "extraction" mindset with China's longer-term industrial strategy and considers how that dynamic is reshaping globalization into a more regional, security-conscious world. The conversation then turns to portfolio implications: why the team has been reducing exposure to mature, highly penetrated software names facing intensifying competition and AI disruption, how the market's treatment of AI has evolved from hype to a more "show me the returns" phase, and where they see resilient opportunities.

Highlights:

• How a more short-term, "extraction"-oriented U.S. policy stance—via tariffs, reshoring, and industrial policy—is altering incentives for companies and trading partners.
• The evolving nature of software moats in an AI world, including higher competitive intensity, mature end markets, and why some long-term winners' valuations may no longer be justified.
• The market's transition from rewarding any AI narrative to demanding clearer evidence of economic returns on massive cloud and data-center capital spending.
• A deliberate tilt toward businesses positioned for a more regionalized, security-focused world order, including nuclear, defense, and automation suppliers with multiple ways to win.
• The importance of remaining bottom-up and valuation-driven while acknowledging regime change—using portfolio construction to manage uncertainty rather than making binary macro bets.

 

Host:

Andrew Johnson, CFA

Institutional Portfolio Manager

 

Guest:

Grayson Witcher, CFA, AB

Portfolio Manager

 

This episode is available for download anywhere you get your podcasts.

Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.

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