NGPF Podcast: Don O'Neal of the Capital Group on the value of investing for the long-term

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May 21, 2021
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Investing, Podcasts, Stocks

 

Don O'Neal of Capital Group joins the NGPF podcast this week. The Capital Group manages more than $2 trillion in assets and is considered one of the top "active" investment managers. Don shares with us the insights from his 35 years in the business, including the analytical process that goes into picking stocks, the value of having a long-term time horizon and how he overcomes the common cognitive biases that plague investors.He also shares the unique organizational structure at the Capital Group which has been a key to their long-term success. Enjoy! 

Details:

  • 0:00~7:46 Current Events with MissBeHelpful: No Credit Score, No Problem
  • 7:46~8:08 A word from NGPF
  • 8:09~9:38 Introducing this Week's Guest: Don O’Neal, Equity Portfolio Manager at Capital Group
  • 9:38~10:38 Working as a portfolio manager
  • 10:38~11:19 The difference between passive and active management
  • 11:19~13:04 Career in money management
  • 13:04~15:20 Deciding to work at the Capital Group
  • 15:20~16:50 The first stock recommendation Don made
  • 16:50~20:16 Encouraging long term behavior
  • 20:16~21:59 The 3-5 year holding period for a stock 
  • 21:59~27:56 Researching stocks for the long term
  • 27:56~32:04 On investing in Google at IPO
  • 32:04~34:57 Managing a portfolio
  • 34:47~38:12 Collaboration and communication within the firm
  • 38:12~41:07 Skills that make an analyst great
  • 41:07~47:54 Cognitive biases and how to overcome them
  • 47:54~51:07 Long term trends of passive and active management
  • 51:07~55:00 Principles of investing for young people
  • 55:00~56:09 Conclusion

Resources:

Quotes:

  • “Invest for the long term, be steady, and you will be surprised at the end of the day how well you do when you give it time.”

About the Authors

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

Ren Makino

Ren has been working part-time at NGPF since 2014, interning through high school and college. With his knowledge growing alongside NGPF, after graduating from college in 2020, he joined the team to work full time with a focus on teacher onboarding. He is also the editor of the NGPF podcast and makes sure it is accessible to teachers on iTunes, Stitcher, and Google Play Music. During his free time, he likes to try out coffees from different roasters across the world and try out new brewing methods, even though personal finance gurus tend to caution against buying a cup of joe.