Mónica Bastos is our Advisor of the Month
29 JAN, 2025
By Jose Luis Palmer from RankiaPro Europe
Monica developed a passion for investments since she was young. Started a degree in Civil Engineering, soon took an MBA in Finance and Wealth Management Program at Columbia University.
After her degree she has worked in several engineering areas and Real Estate Investment. The interest in financial market arose when she was working as real estate portfolio manager at Santander Asset Management. After a while and other work experiences, she decided to invest in this area, mainly in stock markets.
In 2014, Monica became Portfolio Manager, now Head of Investments, for a Portuguese family office. She selects, advises and accomplishes the family investments, both finance and real estate.
Why did you choose to go into financial advice? Did you have other vocations? How were your first steps in the financial sector?
I took a degree in engineering and started my career in Real Estate investment. During this time, I had the experience of working in several areas: design, project management and investments, but the one I liked most was investments. Working as Real Estate portfolio manager in Santander Asset Management and having contact with the areas of stock management funds, made me curious about the volatility of prices and the speed of news for business, where a part of everybody lives. A completely different dynamic.
I started to read some famous Investors biographies and decided to take additional studies in Finance, with greater focus in stock markets. I took a course in Columbia University and had the opportunity of having Bruce Greenwald as a professor.
Then I had the experience of taking the Genius of Warren Buffett Course in Omaha and going to a Berkshire Hathaway meeting. It was “the Experience” of my life. I brought a bag full of knowledge that I could not have in an academic course. Speaking with investors, knowing their experiences and thoughts about investment: horizons, decisions making, goals, errors made in which they have learned, etc. All of this made me change from Real Estate to Stock Markets.
Today I work as a Portfolio Manager for a Portuguese Family Office, primarily using stock investing. We are mainly long-term holders trying to select great companies, which we want to be “married with” for a long time. We try to move on, avowing the market noise. Sometimes it is not easy, but we try to focus on our view, questioning periodically if it is the right one to follow. If not, we adjust maintaining our philosophy, building roots for the next family generation.
How do you see the current macroeconomic environment? Which macro data do you look at most when advising your clients?
This year, there is a swift driver in USA. A lot has been said, but we are not clear about what will be accomplished or not. One thing we believe must be guaranteed, the inflation has to be controlled, otherwise the interest rates will be negatively affected, afflicting the economy and subsequently the stock market. A large part of goods, or goods’ components, that USA consumes are from China. So, there will have to be some moderation, regarding tariffs. Cannot be forgotten that tariffs will be paid by consumers!
In other issues, the same moderation must exist, otherwise the USA economy will be affected. At the end of the day, the USA economy is the main objective to be protected and, in our opinion, has the best position to grow.
On the other side, Europe and China, will be the most affected by this driver, but we think that is already priced in the market. China must do the swift.
How should investors orient their portfolios for 2025? Which do you think will be the biggest challenges and opportunities?
My contribution here will be more about stock markets. I believe that good companies, good businesses, are always a good investment.
During the past 2 years the US market had a spectacular performance. However, this was achieved by the performance of the big seven. We see some adjustments by sectors. There are stocks/sectors at very interesting prices, but at the end, the big seven are the best positioned to escalate their growth, considering the AI revolution, which in our view is just at the beginning of the cycle.
I think in 2025, the volatility will be higher than last year.
What characteristics do you think a good financial advisor should have?
The key to success: Curiosity, Observer and a Great Good Sense.
- Curiosity – Makes you look, makes you search, makes you learn, makes you have more inputs to make your decisions well substantiated.
- Observer – Is important to observe all around you! You can read a lot of research, books, … but it is important you walk on the street and see the tendencies of goods people are using, activities they are practicing, their habits. I think this is a huge tool, having feedback from consumers.
- Great Good Sense – The most important in my opinion is this one. Everyone in this industry has access to the same tools, general information and research. The investing decision is driven by multi factors: mathematical, investment needs, psychological, emotional, empathy, work environment, etc. The Good Sense is key to link all these factors and make a good investment decision.
Which portfolio allocations are most interesting in the current market situation? Which sector do you consider particularly interesting at the moment?
We are focused on USA stocks, big caps. Our convictions are that AI is still beginning, and the bigger players are the best ones to stay on. Here US companies are well ahead from their external competitors.
Also in Luxury European stocks, since we believe they are underpriced. We have the same view regarding China, we think that some measures by the Chinese government to boost the Chinese market will have to be taken, considering the overselling that has been occurring for so long in this market.
What does a typical workday look like for you? How do you organize your time?
One of the first books I read was Guy Spier's book - "The Education of a Value Investor", where he admits having attention deficit disorder. I realized that I am also susceptible to a lot of distractions. I took note of some rules he uses that I apply to organize my time and tasks without leaving anything behind. To-do lists are my best friends.
I always start my day by watching the futures market in the US and the Asian markets. I read the newsletters and research that I follow and check the situation of the portfolio. I follow the macro news and specific news related to portfolio assets.
Following closely the earnings season is very important and also stressful for me. At the end of the day, I try to do a follow up and prepare the next day.
What roles do you think regulation plays or should play in driving Socially Responsible Investment?
SRI Regulation is fundamental and should be aligned with appropriate ratios for each sector, considering the specificities of each one. It is still in its initial phase, which makes it somewhat complex, and should move towards to be a simpler regulation. Measures are important to guarantee our future! We must invest in our future!
What do you like to do in your free time?
Outside of work, I am proud to be a mother of teenagers’ twins. This is one of my big life challenges. I try to follow their walks and achievements. Cultivate them with good seeds. Family traveling is what we like to do most, having good time, creating good memories, getting inspired, and maintaining our curiosity.
Cooking for me is also a hobby. When I travel, I always visit the local markets, eat local food and collect new ideas to try to cook back home. I also read a lot and love to walk by the sea or nature. Portugal is an amazing and diversified landscape country to enjoy.
