In this episode of From the Bottom Up, Julie Biel, CFA, Chief Market Strategist, and Chris Wright, CFA, Portfolio Manager and Senior Research Analyst, examine how we evaluate quality as AI reshapes market expectations and competitive dynamics. Through specific company examples, they consider which advantages may remain durable, which traditional measures of quality warrant greater scrutiny, and why a long-term perspective matters when market narratives are changing quickly.
Looking Beyond the AI Fear Trade
As capital crowds into businesses perceived as either benefiting from AI or insulated from disruption, we believe selectivity remains critical.
Identifying Competitive Advantages That Endure
Through several company examples, Julie and Chris explore competitive advantages that can be difficult to replicate, including proprietary data, trusted industry standards, regulatory barriers, and deeply embedded customer relationships.
Reassessing Quality as Markets Evolve
Our commitment to quality has not changed, but the characteristics that support a durable competitive advantage require continual evaluation. As technology reshapes industries and market leadership shifts, our investment team continues to reassess the factors that underpin business quality while remaining focused on long-term fundamentals, competitive positioning, and the durability of returns.
Chapters:
0:00: Quality Investing in an AI-Driven Market
3:05: The AI Fear Trade
5:26: The Competitive Value of Proprietary Data
10:20: The Power of Industry Standards
15:25: Rethinking Switching Costs in the Age of AI
18:21: Staying Disciplined When Quality Is Out of Favor
19:50: Customer Concentration and the AI Buildout
22:58: Testing the Economics of AI Infrastructure
Recorded on May 13, 2026