Soaring with Capital Group Vice Chair Jody Jonsson
Dec 26, 2024
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In this engaging discussion, Jody Jonsson, Vice Chair of Capital Group and an experienced pilot, shares her unique perspective on investing. She reveals how piloting has informed her approach to evaluating aerospace companies. Jody dives into her journey of investment strategy evolution, focusing on long-term successes in healthcare and insurance. Listeners will be captivated by her adventurous aerobatic experiences and the transformative power of mentorship in both aviation and finance.
Jody Jonsson's experience as a pilot enhances her investment strategy, emphasizing quality companies resilient to economic fluctuations.
Her significant investment mistake with Sendent underscored the importance of due diligence and corporate governance in investment decisions.
Deep dives
Journey to Becoming a Pilot
Jody Johnson became a pilot in 2013, turning a three-month sabbatical into a new passion at age 50. During her journey, she acquired multiple ratings and is now flying a twin-engine plane, including engaging in aerobatic flights with renowned pilots. This experience has not only honed her flying skills but also enriched her life through the thrill and camaraderie found in aviation. Furthermore, she volunteers with Angel Flight West, where she transports patients in need of medical care, which she finds humbling and rewarding.
The Value of Long-Term Investing
Jody identifies as a 'lazy investor,' preferring to focus on fewer and better investment decisions, which has resulted in a significantly low portfolio turnover rate. With an average holding period of around 12 years for stocks, she aims to retain quality companies that are battle-tested and capable of adapting to varying economic conditions. This investment philosophy allows her to let compounding work in her favor while minimizing the stress of constant trading. She emphasizes the importance of not being overly concerned with short-term fluctuations, focusing instead on owning winners that can sustain long-term growth.
Global Investment Strategies
In her role, Jody manages a global investment strategy that looks for multinational companies benefiting from changing trade patterns, referring to them as 'global champions.' These companies have extensive experience navigating economic challenges, making them resilient and well-equipped to thrive in fluctuating markets. She draws on her experience and insights from years of studying and investing in global firms to seek opportunities within this broad landscape. By focusing on quality and adaptability, Jody effectively crafts an investment portfolio that remains durable across various economic climates.
Learning from Past Mistakes
Jody reflects on a significant investment mistake involving the fraudulent company Sendent, which taught her invaluable lessons about corporate governance and due diligence. The incident instilled a greater sense of humility regarding the knowledge and reliability of management teams, leading her to be more cautious and thorough in her analysis. Encouragement from colleagues during this challenging time highlighted the supportive culture at Capital Group, reinforcing the idea that mistakes can be stepping stones to growth. This experience shaped her approach to monitoring investments closely, recognizing that management's understanding of their operations can sometimes be limited.
What does a portfolio manager have in common with a pilot? Tune in to hear Capital Group Vice Chair Jody Jonsson, who is both, discuss her adventures in the sky and in the markets with our CEO Mike Gitlin. Listen as Jody explains how earning her pilot’s license helped her evaluate aerospace companies, among other compelling investment opportunities. #CapGroupGlobal
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Capital Group was established in 1931 in Los Angeles, California, with the mission to improve people’s lives through successful investing. With our clients at the core of everything we do, we offer carefully researched products and services to help them achieve their financial goals.