For more than a decade, investors grew accustomed to falling interest rates, low inflation, and cheap capital. That backdrop shaped portfolio construction, valuation frameworks, and expectations about which businesses could thrive.

That era now appears firmly behind us.

The Reserve Bank of Australia’s latest decision to hold rates came with clear guidance that inflation remains sticky and further tightening cannot be ruled out. Since then, both two-year and ten-year Australian government bond yields have drifted higher, reinforcing the idea that we are living in a structurally higher-rate, higher-debt world.

In this environment, investors seeking steady compounding are often drawn to businesses with two powerful…