How to "work smarter, not harder" when it comes to investing

Lazard Asset Management's Warryn Robertson has been working in markets for more than three decades - and there is one key lesson he has learnt in that time that has made the most significant contribution to his investment success. 

Investors need to work smarter, not harder - if you are spending far too much time on complex problems, businesses or investments you are not going to have the same payoff as you would solving simple problems instead. 

"Essentially, we all spend our time trying to solve problems. And what smart people do - or what smart people think they try to do - is solve really hard problems. And that becomes really difficult - and sometimes you get it right and sometimes you get it wrong," Robertson explains. 

"I think the key learning I've had, is that if you are a relatively smart person and you are trying to solve really simple problems, you are more likely to get it right." 

So what does that mean when it comes to investing? 

"I try to find businesses that are easy to understand, that are easy to forecast the earnings of, easy to put a valuation on... If you can find a group of businesses that are easier to forecast and therefore easier to value, you are more likely to get it right," Roberston says. 

Infrastructure businesses are a great example of this. These investments are typically monopolistic and have inflation-protected revenue streams - "boring" like bonds are, as Robertson puts it, but with equity-like returns. They also are more likely to generate predictable earnings over long periods.

In this Views from the Top interview, Robertson shares the incredible story that inspired his career in investments in the first place, why he believes infrastructure assets can help investors stay afloat in 2024, as well as some of the listed companies he likes right now (and the areas he recommends investors avoid over the year ahead). 

Note: This interview was recorded on Wednesday 29 November 2023.

Timecodes

• 0:00 - Intro 
• 0:31 - What kickstarted Warryn's interest in investment management 
• 2:57 - The greatest lesson from 30 years in markets: Work smarter, not harder 
• 4:14 - Why infrastructure investments? 
• 5:40 - How have Lazard's portfolio companies been impacted by COVID-19 and rising interest rates 
• 6:46 - Attributes of great infrastructure investments 
• 7:25 - Businesses to avoid over the year ahead
• 8:21 - Where Lazard is finding opportunities today 
• 10:30 - Long-term performance expectations (and is CPI+5% achievable?) 
• 11:42 - Why US utilities could face headwinds from here 
• 13:09 - M&A opportunity in the sector 
• 14:27 - Warryn's view from the top  

Learn more

The Lazard Global Listed Infrastructure Fund offers access to an attractive asset class with low correlation to global equities and fixed income over the long term and is managed by one of the world's most experienced listed infrastructure teams. Find out more below

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Lazard Global Listed Infrastructure Fund

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