Short Briefings On Long Term Thinking - Baillie Gifford

Emerging markets have sometimes promised more than they have delivered, but circumstances may be tipping in growth investors’ favour. Will Sutcliffe, head of our Emerging Markets Team, explains why it’s an opportune time to invest in the asset class. Background: Will Sutcliffe is the head of Baillie Gifford’s Emerging Markets Team and co-manager of our Emerging Markets Leading Companies Fund. In this episode of Short Briefings on Long Term Thinking, he brings his 23 years of experience in the field to explain what makes the specialism different from other types of growth investing. He makes the case that finding exceptional growth companies at attractive valuations is only part of the equation. Investors must be mindful of the broader macroeconomic environment, he explains, to avoid getting caught out by currency swings or spiralling debt costs. This leads him to conclude that recent resilience in emerging market economies could point to a favourable outlook for the asset class’s growth stocks. All this only

A new medicine that can help patients lose 15 per cent of their body weight could have far-reaching consequences for healthcare. Wegovy mimics a hormone the gut releases, reducing appetite and slowing digestion to delay hunger’s return. Research is also underway into other potential health benefits. In this podcast, Baillie Gifford investment manager Ross Mathison discusses its maker, the Danish pharmaceuticals manufacturer Novo Nordisk, which became Europe’s most valuable company in 2023. Background:Ross Mathison is an investment manager in our Global Income Growth Team, co-manager of our Global Income Growth Fund and deputy manager of the Scottish American Investment Company (SAINTS). In this episode of Short Briefings on Long Term Thinking, he discusses how medicines that mimic the glucagon-like peptide-1 (GLP-1) hormone could help tackle the growing problem of weight gain. Forecasts suggest that by 2035, more than half the world’s population will either be overweight or obese. That’s likely to lead to mor

What distinguishes companies that will thrive from those that will perish? In this episode, we explore three traits that mark out the companies set to surge ahead from those more likely to struggle: 1.      They solve real-world problems2.      They are financially strong and disciplined3.      They are highly adaptable Baillie Gifford partner Tim Garratt discusses these characteristics, gives examples of companies that exhibit them and explains why this feels like a once-in-a-generation opportunity to be a long-term growth investor. BackgroundTim Garratt is an investment specialist, overseeing the institutional clients who invest in our Long Term Global Growth strategy and leading our broader client specialist network. He recently co-authored the paper Why growth, why now?, which reaffirms our beliefs about how growth investing can generate attractive returns.In this episode of Short Briefings on Long Term Thinking, he discusses how interest rate rises, restricted amounts of capital and geopolitical tensions

Show notesAmazon and DoorDash take different approaches to bridging the physical and digital worlds. Amazon has built an extensive infrastructure of warehouses, logistics networks and data centres to directly control its operations. DoorDash instead relies on partnerships with restaurants and stores for deliveries, limiting its capital investment. In this podcast, Baillie Gifford investment manager Kirsty Gibson analyses the advantages of each model and how both approaches can pose a disruptive challenge to more traditional businesses. Amazon and DoorDash exemplify two distinct approaches to rooting a business in both the physical and digital worlds. Amazon has done so by investing deeply in physical infrastructure, including its vast logistics operations and data centres. DoorDash, by contrast, has focused on partnering with others to offer meal and grocery deliveries. Baillie Gifford investment manager Kirsty Gibson explores the merits of each approach and discusses how the two companies and others like the

China became known as the world’s factory thanks to it offering companies a way to manufacture all kinds of goods at a high quality and relatively low cost. But in recent years, south-east Asian nations, including Vietnam and Indonesia, have begun challenging it for that status. Baillie Gifford investment manager Ben Durrant recently returned from a tour of the region. He discusses some of the long-term growth opportunities he unearthed on his trip. BackgroundBen Durrant invests on behalf of the Pacific Horizon Investment Trust, the Pacific Fund, and our Emerging Markets Equity Team. In this latest episode of Short Briefings on Long Term Thinking, he explores the factors that led China to become the world’s leading exporter and how its move up the value chain is now creating opportunities for other south-east Asian countries to grasp. Durrant reviews some of his most memorable encounters in Vietnam, Indonesia, Malaysia and Thailand and reveals which growth companies excited him the most. They include business

Is the time ripe for Japanese growth stocks? Donald Farquharson is Baillie Gifford’s head of Japanese equities and knows the market better than most. In the latest episode of Short Briefings on Long Term Thinking he draws on a recent visit to the country to explain why conditions seem favourable for a cohort of domestic companies with long-term mindsets. Background There’s a sense of renewed confidence and enthusiasm in the air in Japan. The country is home to the world’s second-largest market for equities after the US, but it doesn’t get a corresponding degree of attention from international investors. The reason is partly because of the nation’s past weak economic performance. But a recovery is underway, and critically, many of its growth stocks have strong balance sheets, big ambitions and a positive story to tell. In this episode, Baillie Gifford partner Donald Farquharson draws on his experience of investing in Japan since 1990 to explain why he’s particularly optimistic about the opportunities ahead for

What counts as a growth stock is ever-changing. Mark Urquhart shares lessons from 27 years of investing to explain how he decides what to buy and how long to hold as he continues his hunt for outsized returns.  Background: In 1996, our largest investments included oil and gas companies and high street banks. These days, our biggest holdings specialise in computer chips, ecommerce and biotech. We still pursue long-term growth – companies we believe will reach their potential given time. But we find it in different places. In this episode, partner Mark Urquhart explains how he tries to identify companies that can grow for a decade or longer, allowing their sales, profits and share prices to compound along the way. He discusses the changing nature of the businesses that qualify and what gives him the confidence to back maverick founders. Other topics he covers in conversation with managing editor Malcolm Borthwick include lessons from the pandemic and the growth companies that most excite him today. Resources:Th

Stuart Dunbar explains why a long-term investment approach suits the new types of growth companies that are emerging.Background:It’s been five years since Baillie Gifford launched its ‘actual investors’ campaign. It focuses on the firm’s long-term, active approach to growth.  In this episode, the effort’s mastermind Stuart Dunbar joins Malcolm Borthwick to take stock and explain why actual investing is more relevant than ever. As he explains, capital-intensive companies are seeking to transform healthcare, transport and entertainment, among other industries, and they need patient, supportive shareholders to fulfil their potential and deliver strong returns.  Resources:Actual investorsLet’s talk about actual investingBaillie Gifford’s investment beliefsThe Premonition by Michael LewisThe Economics of Fund Management by Ed MoissonThe Golfer’s Journal Timecodes:0:00   Introduction1:30   What is Actual investing?3:30   Finding great companies4:20   Investing with autonomy and conviction6:10   Growth investing8:00

To mark the pioneering Trust’s anniversary, James Dow delves into SAINTS’ origins and explains how he helped reinvigorate it for a new age.Background:The Scottish American Investment Company (SAINTS) made its debut in 1873, introducing the first trust to prevent shareholders from facing ruin if a business they backed failed. This groundbreaking approach instilled confidence, paving the way for the public to invest in a vital US railway among other enticing overseas opportunities.Nearly 20 years ago, Baillie Gifford took over the Trust’s management. Joint manager James Dow helped revitalise SAINTS by focusing on exceptional income-driven global companies. As he tells podcast host Malcolm Borthwick, their activities range from making AI-enhanced factory cameras to creating some of the world’s most sought-after cosmetics.Resources:The Scottish American Investment Trust CompanyOrder a copy of the SAINTS: 150 Years bookSAINTS Manager Insights video, April 2023The SAINTS approach webinar video, March 2023Shoemaker

<p>Keystone Positive Change’s Kate Fox on thinking about the world in 2050 to spot opportunities today.</p><p><b>Background:</b></p><p>Kate’s conversation with Malcolm Borthwick covers her work with the Deep Transitions Futures project, coordinated by the University of Sussex and Utrecht University and supported by Baillie Gifford.</p><p>The project aims to identify patterns and insights from past ‘deep transitions’, such as the Industrial Revolution, to inform and guide our approach to identifying solutions to present and future challenges. These include climate change, social inequality, and biodiversity loss. The initiative seeks to develop strategies for fostering radical innovation. It engages investors, policymakers and researchers, among other stakeholders, to promote a transformative investment philosophy and drive systemic change.</p><p><b>Resources:</b></p><p><a href=”https://www.bailliegifford.com/?insights

Meet the lesser-known niche players thriving in the shadow of the country’s big brands  Think of Japanese companies and chances are giants such as Sony, Hitachi and Mitsubishi come to mind. You probably don't think of Shima Seiki - a maker of automated knitting machines, Descente, which owns licences to use brands such as Le Coq Sportif and Umbro, or Shoei, a maker of handmade motorcycle helmets. But these kinds of companies are the beating heart of its economy. Japan’s three and a half million small and medium-sized businesses (SMEs) employ about seven in 10 private sector workers. These firms are sometimes overlooked by investors in Japan, but not by Praveen Kumar, manager of Baillie Gifford Shin Nippon, who explains why they provide ample opportunities for growth investors.  Praveen Kumar is manager of the Baillie Gifford Shin Nippon and Baillie Gifford Japan Trust. You can read more about his and his colleagues’ thoughts about the positive outlook for Japan’s most inventive and disruptive companies at our

As many question the future of growth investing, the American Fund’s Dave Bujnowski explores the new engines powering progress.

Kirsty Gibson and Julia Angeles on how technology is changing the way we do business.

Rose Nguyen on the companies seeking to overcome the scourge of heart disease.

Why ‘what if…?’ is the most vital question an investor can ask. Kirsty Gibson of the Baillie Gifford US Growth Trust explains.

It’s a small country with a large number of businesses that can keep innovating and growing for decades. Stephen Paice explores what’s so great about Sweden.

Apps and online courses have upended the economics of education, making learning more accessible, fun and relevant. Positive Change’s Thaiha Nguyen explains.

For Peter Singlehurst, head of the Private Companies Team, the difference between investing in a private company and a public company is that private companies choose their shareholders. So, why choose Baillie Gifford?

‘Growth or value’ has framed many investment narratives. But Monks’ Malcolm MacColl explains the two aren’t at odds.

Over four decades Japan has seen 21 prime ministers come and go. Exporters such as Toyota and Toshiba have flourished but the country has also struggled with debt and deflation. Matthew Brett, manager of The Baillie Gifford Japan Trust, discusses what’s next.