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:

• FinCap Friday: No Credit Score, No Problem
• Capital Group

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.

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Ren Makino

Ren started interning at NGPF in 2014, and worked part-time through high school and college. With his knowledge growing alongside NGPF, he joined the team to work full-time after graduating from college in 2020. He is also the producer of the NGPF podcast. During his free time, he likes to try out coffees from different roasters across the world.

More posts by Ren