European equity markets are still struggling to overcome the effects of the pandemic. But diligent investors can find surprising investment candidates.
European investors were recently reminded how tricky it is to evaluate a company’s environmental, social and governance (ESG) credentials. Tesla’s plans to chop down a forest to build a manufacturing facility for electric cars in Germany reinforced the need for independent research and engagement to assess the risks and opportunities created by ESG controversies.
Investors often ask how it’s possible to allocate capital to European stocks given the political risks that abound. We think the answer is to combine disciplined stock picking with risk-management tools that look for unintended threats to a portfolio.
With Brexit headlines dominating the European news, equity investors face an ongoing challenge. Building resilient portfolios requires a clear view of the long-term outlook for European companies that also reflects major short-term political uncertainties.
This letter has been a long time coming. It’s time for us to talk. Buyout funds are at your doorstep.
Solid economic growth and receding political risk continue to support sentiment towards European equities, despite the recent market pullback. As market conditions shift, a selective focus on companies with underestimated profitability is essential for investment success.
Investors in European stocks are facing multiple sources of risk. Applying the mindset of strategic business owners can help tune out the noise and sharpen investors’ focus on more resilient sources of return potential.