In a rapidly shifting global landscape, investors are faced with an unrelenting challenge: how to distinguish true opportunity from fleeting noise. On a recent episode of The Meb Faber Show,1 Capital Group Portfolio Manager Carl Kawaja delivered a masterclass in what it takes to thrive when everything is changing, and uncertainty dominates the headlines.
It’s worth noting to you that you should tune in, simply because we could not capture the entire rich insight of this interview in 700+ words—so we urge you to make a point of listening to it.
With three decades of success managing billions for Capital Group’s flagship funds, Kawaja draws from a deep well of personal experience, family wisdom, and a flexible investing philosophy shaped very early on, by his grandmother's general store on the island of Saint Kitts. "I sometimes think about stocks in my portfolio the same way," Kawaja says, emphasizing that, just like goods in a store, different investments require different approaches. "There was kind of a flexible approach to making money and understanding that, for me, different kinds of investments have different rationales behind them."
The First Principles of Enduring Success
"Usually there's only one thing that's important," Kawaja explains. "Where there's magic is when there's one thing that's important to get right, you understand what that one thing is better than other people, and you've come to a different conclusion about that than other people."
Rather than spread effort thin, he advises: "If there are 30 things that are important, that is a hard one to get right. And you should probably spend your time doing something else."
He adds, "Part of it is figuring out what that one question is and then asking it over and over again."
Flexibility Is the New Edge
On navigating today’s volatile environment, Kawaja is candid: "It's hard. None of us have experienced this before, so we're all trying to figure it out."
When addressing political and trade turmoil, he maintains a clear view: "By the time of the midterms, this administration may lose some of its clout and, you know, four years from now, maybe all of it."
Kawaja sees opportunity where others might panic: "I'm probably more inclined where things are very dislocated to view it as opportunity."
Finding Value Beyond Borders
Global diversification is no longer optional, in Kawaja's view. "I keep saying, well, one day they will be. I kind of feel like that day has arrived," he said, referring to non-U.S. markets outperforming.
"There are a lot of amazing companies and amazing people outside the United States who are going to create value," he affirms.
Durable Themes: Where Opportunity Still Compounds
Kawaja’s conviction areas today include:
- Semiconductors: "I think that they're [Taiwan Semiconductor] an ultimate beneficiary. No one else is even close to them."
- Sports Gaming: "FanDuel has that variety of things. And so they price the tail better, kind of like an Amazon which has been an analogy to that."
- Raw Materials: "Steel's got a couple thousand years of history of defeating the incumbents."
- Biotechnology: "I think that the field of biology is going to produce a lot of economic opportunity."
Patience, Focus, and the Will to Hold
Reflecting on holding successful investments, Kawaja notes the wisdom gleaned from one of his colleagues: “[He] has a philosophy that's informed me. He believes in letting your stocks that have been strong performers continue in your portfolio because he thinks their success is self reinforcing. And I would say that he's humble about his own inability to forecast the future. I try to remember that myself."
He acknowledges the unpredictability that defines investing: "It's important to remember that there's some element of this job that is a little bit uncertain as well."
Built for Today, Tuned for Tomorrow
Carl Kawaja’s blueprint for today’s investor is grounded in clarity and pragmatism:
- "Be flexible" and adapt to new realities.
- Focus on "one thing that's important" and stay disciplined.
- Recognize that "there are a lot of amazing companies and amazing people outside the United States."
- "When you find gold, fill your pockets with it."
"Understand that there are gonna be months when there are no insights," Kawaja reminds us. "But when you find gold, fill your pockets with it."
For investors ready to meet the challenges of today and the opportunities of tomorrow, Carl Kawaja’s timeless approach offers both a compass and a call to action.
Footnotes:
1 Show, The Meb Faber. "Learn How To Invest During Tariff Wars (Capital Group’s Carl Kawaja Explains)." YouTube, 25 Apr. 2025, www.youtube.com/watch?v=3ZHeSOBJuKo.
Listen on Apple Podcasts: “Carl Kawaja – Navigating the Investment Landscape: AI, Tariffs, Sports Gambling & More| #580." Apple Podcasts, 27 Apr. 2025, podcasts.apple.com/us/podcast/carl-kawaja-navigating-the-investment-landscape-ai/id1128955736?i=1000704874037.
Listen on Spotify: "Carl Kawaja – Navigating the Investment Landscape: AI, Tariffs, Sports Gambling & More| #580." Spotify, 27 Apr. 2025, open.spotify.com/episode/3IDJ39IAgC2XSxvI0imRZV.
To learn more about Carl Kawaja’s work and explore Capital Group visit Capital Group’s website.
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