Capital Ideas Podcast Banking on the big picture: How patience can pay off
Jan 8, 2026
Alfonso Barroso, a seasoned equity portfolio manager with over 30 years at Capital Group, shares insights on the recent rally in European banks. He discusses how rising rates and more shareholder-friendly policies are shaping the sector’s future. Alfonso emphasizes the importance of focusing on downside risk for better investment decisions and reveals hidden value in overlooked industrials like Volvo and Michelin. With a macro view and patience in investing, he highlights the role of dividends in fostering long-term growth.
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Seeing Retailers Price In Real Time
- Early analyst travel took Alfonso to Brazilian hypermarkets during rampant inflation with staff on roller skates updating prices.
- He used those firsthand experiences to understand how retailers adapt to extreme macro conditions.
Research Trip To Post‑Soviet Mines
- Alfonso visited a Tajikistan open-pit gold mine shortly after the Soviet collapse and met the young president.
- He observed resource-rich, underinvested regions and later saw the mine become part of a major Chinese mining company.
Prioritize Downside Protection
- Focus on downside risk first before thinking about upside when evaluating stocks.
- Avoid crowded, frothy IPOs and overlevered sectors to reduce the chance of blowups.