CPD: The wealth effects of climate change

March 11, 2021

Addressing a group of financial advisers during a recent webinar, Munro Partners CIO Nick Griffin called climate change the ‘biggest S-curve’ – or greatest investment opportunity – of his lifetime. This article from GSFM Pty Ltd explores the S-curve and climate change, and what both mean for investors.

Investing is a game of winners and losers

The equity market is incredibly simple. It’s made up of very few exceptional companies and thousands and thousands of really mediocre ones. As a global growth investor, Munro Partners believes it is their job to find those few exceptional companies.

The 2017 study by Hendrik Bessembinder, Professor of Finance at the Arizona State University, examined what would happen if an investor bought and held every company that ever listed on the US stock market over the prior 90 years. The results were startling.

Of those companies, the top 50 stocks now make up more than 40% of the value of the market – 50 companies out of 26,000. Investing is a game of few winners and many losers.

To read the article and complete the quiz (0.5 CPD), click here.

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