Episode #86: Diversification, the Value Premium and the Importance of the Profitability Factor

Diversification, the Value Premium and the Importance of the Profitability Factor

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle discuss diversification, the value premium and the importance of the profitability factor.

Or you can listen to this podcast using a streaming platform

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

---

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:

You’re listening to Capital Topics, episode #86!

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital.

In today’s episode, we discuss diversification, the value premium and the importance of the profitability factor

Enjoy!

2)   DIVERSIFICATION, THE VALUE PREMIUN AND THE IMPORTANT OF THE PROFITABILITY FACTOR:

François Doyon La Rochelle:

James, I will start this off for our Listeners.  Our recent Podcasts have addressed fundamental concepts for Investors.  In our Podcast #84, we tackled Risk Profiling, covering the two components of Risk Tolerance and Risk Capacity.  And in our most recent Podcast #85, we did an update on the Active vs. Passive debate.

Our Listeners know that the markets are now struggling with how to figure out the short- and long-term impacts of the War in Iran.  No one has a crystal ball and can predict how it will turn out.  At the end of the day, what is critical for Investors is how they will manage their emotions in this sea of negative headlines.  We have been consistent in telling our listeners that it is imperative they tune out the noise in the financial media.  But easier said than done.

This leads us to today’s topics, which will start with a discussion about diversification. We are also going to go beyond broad market stock exposures by doing an update on two other dimensions of diversification, which are the Value premium and the Profitability factor.  So, James, where would you like to start?…Read More

---

Links:

- Who Is On the Other Side? A Framework for Understanding Market (In)Efficiency | Morgan Stanley By Michael Mauboussin & Dan Callahan – Morgan Stanley Investment Management

---

Stay informed and inspired. Subscribe to our Bi-Weekly Newsletter for the latest podcasts, blogs, and James & François’ top reads from the past two weeks.

Episode #85: Active vs Passive – Who Is on the Other Side of the Trade?

Active vs Passive – Who Is on the Other Side of the Trade?

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle discuss with Raymond Kerzerho, PWL’s Senior Researcher, a recent research paper from Morgan Stanley entitled “Who is on the Other Side”.

Or you can listen to this podcast using a streaming platform

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

---

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:

You’re listening to Capital Topics, episode #85!

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital.

In this episode, we will discuss with Raymond Kerzerho, PWL’s Senior Researcher about a recent research paper from Morgan Stanley entitled “ Who is on the Other Side”.

Enjoy!

2)   ACTIVE VS PASSIVE – WHO IS ON THE OTHER SIDE OF THE TRADE:

François Doyon La Rochelle:

So welcome back to the show Ray. Today, we're unpacking a heavy-hitter report from Morgan Stanley called Who's on the Other Side. It's all about the tug of war between active and passive investing.…Read More

---

Links:

- Who Is On the Other Side? A Framework for Understanding Market (In)Efficiency | Morgan Stanley By Michael Mauboussin & Dan Callahan – Morgan Stanley Investment Management

---

Stay informed and inspired. Subscribe to our Bi-Weekly Newsletter for the latest podcasts, blogs, and James & François’ top reads from the past two weeks.

Episode #84: How Much Risk Can You Take in Your Portfolio?

How Much Risk Can You Take in Your Portfolio?

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle discuss crucial components of investing: Risk Tolerance & Risk Capacity.

Or you can listen to this podcast using a streaming platform

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

---

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:

You’re listening to Capital Topics, episode #84!

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital.

In today’s episode, we discuss crucial components of investing which are risk tolerance and risk capacity.

Enjoy!

2)   HOW MUCH RISK CAN YOU TAKE IN YOUR PORTFOLIO:

François Doyon La Rochelle:

James, this is a topic we have wanted to tackle for a long time.  We finally get to it as PWL Capital is launching its new Risk Profiling tool.  Risk profiling is a key regulatory requirement to establish suitability for clients’ portfolios.  I am sure our Listeners will find this topic very useful. It will help them consider how their portfolio is structured and whether they may need to make adjustments. Let’s get right into it.…Read More

---

Links:

- Episode 61: PWL's expected returns and review of Professor Scott Cederburg's research paper — Capital Topics By James Parkyn & François Doyon La Rochelle – PWL Capital

- Episode #79: Are your expectation of Market returns too high? — Capital Topics By James Parkyn & François Doyon La Rochelle – PWL Capital

- Model Portfolios | Parkyn-Doyon La Rochelle By Raymond Kerzérho – PWL Capital

---

Stay informed and inspired. Subscribe to our Bi-Weekly Newsletter for the latest podcasts, blogs, and James & François’ top reads from the past two weeks.

Episode #83: 2025 Capital Markets Review: A Banner Year for Investing Lessons

2025 Capital Markets Review: A Banner Year for Investing Lessons

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle break down the key stock market statistics from 2025 and unpack the biggest lessons the year taught investors.

Or you can listen to this podcast using a streaming platform

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

---

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:

You’re listening to Capital Topics, episode #83!

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital.

In today’s episode, we break down the key stock market statistics from 2025 and we unpack the biggest lessons the year taught investors.

Enjoy!

2)   2025 CAPITAL MARKETS REVIEW: A BANNER YEAR FOR INVESTING LESSONS:

François Doyon La Rochelle:

Before we start, since this is our first podcast of the year, I would like to wish our audience a happy, healthy, and prosperous year in 2026.

James Parkyn:

Yes indeed, François. Our best wishes for 2026 go out to all our listeners and their families, wishing them all the best of health and happiness.

François Doyon La Rochelle:

Now, as we usually do in the first episode of the year, we will look at what happened in the markets and the economy in 2025, a year that frankly defied expectations at almost every turn. If we had told our listeners at the start of the year that we would see sweeping tariffs, a record‑long U.S. government shutdown, sticky inflation, geopolitical turmoil, and a constant tug‑of‑war between optimism and fear, I think that our listeners would have predicted a very rough year for the stock markets.…Read More

---

Links:

- Investor Psychology: How Behavioural Biases Can Sabotage Your Success — Capital Topics By James Parkyn – PWL Capital

- Our Best Advice of 2025 — Capital Topics By James Parkyn – PWL Capital

- Market Statistics | Parkyn-Doyon La Rochelle By Raymond Kerzérho – PWL Capital

---

Stay informed and inspired. Subscribe to our Bi-Weekly Newsletter for the latest podcasts, blogs, and James & François’ top reads from the past two weeks.

Episode #82: Investor Psychology: How Your Behavioral Biases Sabotage Your Long-Term Investment Plan

Investor Psychology: How Your Behavioral Biases Sabotage Your Long-Term Investment Plan

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle discuss how investors’ behavioral biases sabotage their long-term investment plan.

Or you can listen to this podcast using a streaming platform

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

---

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:

You’re listening to Capital Topics, episode #82!

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital.

In our podcast today we will discuss how your behavioral biases sabotage your long-term investment plan.

Enjoy!

2)   INVESTOR PSYCHOLOGY: HOW YOUR BEHAVIORAL BIASES SABOTAGE YOUR LONG-TERM INVESTMENT PLAN:

François Doyon La Rochelle:

So today, we will be tackling one of the most fascinating and perhaps the most frustrating parts of investing, which is investor psychology.

We have mentioned this regularly on the podcast and in many ways throughout the years, but the biggest risk to our portfolios isn’t the economy, interest rates, or price levels of the markets; most of the time, it’s us. Our behavioral biases shape how we save, how we invest, and they often lead us to make decisions that feel right in the moment, but that will hurt us in the long run…Read More

---

Links:

- The Value of Good Financial Advice — Capital Topics By James Parkyn – PWL Capital

---

Stay informed and inspired. Subscribe to our Bi-Weekly Newsletter for the latest podcasts, blogs, and James & François’ top reads from the past two weeks.