Podcast
Short Briefings on Long Term Thinking - Baillie Gifford
Hosted by Baillie Gifford · EN
Baillie Gifford’s Short Briefings on Long Term Thinking bring valuable insights into the benefits of taking the long view. You’ll hear frank, thought-provoking opinions from our team in Edinburgh and experts around the world. These podcasts do not constitute an offer of or solicitation for purchase or sale of securities or provision of any investment services. They are provided for information only and should not be considered as investment advice or a recommendation to buy, sell or hold a particular investment. Our podcasts have been compiled with considerable care to ensure their accuracy at the date of publication. No representation or warranty, express or implied, is made to their accuracy or completeness. For further details please see our legal information at www.bailliegifford.com
22episodes
Episodes
Newest firstAll episodes
The big squeeze: when bottlenecks work to your advantage
4w ago00:34:44Tap to summarizeBottlenecks often act as constraints on growth, but companies that create funnels through them can gain pricing power and capture long-term value. Investment manager Mike Taylor reveals some of the companies he thinks achieve this best and how he spots such pinch points before they fully form.Mike Taylor is a Baillie Gifford partner, an investment manager in its Global Alpha Strategy and a co-manager of The Monks Investment Trust. In this conversation, he tells Short Briefings… host Leo Kelion about how bottlenecks can confer an advantage on companies that sit astride them. That includes those that serve a mismatch between supply and demand created by others, and those whose products and services create a new pinch point, which they control. In addition, he explains why mixing a cocktail of bottlenecks in his portfolios can deliver smoother growth for their shareholders. Portfolio companies discussed include:Medpace – the drug and biologic contract research organisation Games Workshop – the maker of the Warhammer tabletop battle gamesTidewater – the provider of offshore vessels to the oil and gas sectorFreeport-McMoRan – the mining company that produces gold and copper, among other mineralsDISCO – the precision tools company, widely used in the semiconductor industrySamsung Electronics – the electronics conglomerateSK Hynix – the memory chip specialist Resources:Don’t Burn Your Boats: the case for selective AI investingGlobal Alpha Investment StrategySPQR: A History of Ancient RomeShort Briefings on Long Term Thinking podcast archiveThe Monks Investment TrustValuing scarcity in the age of AI Companies mentioned include:AmazonDISCOGames WorkshopTidewaterFreeport-McMoRanMedpaceNVIDIASamsung ElectronicsSandozSK HynixTimecodes:00:00 Introduction02:10 Investing inside and outside Baillie Gifford03:55 Defining bottlenecks04:45 How Medpace helps biotechs meet regulatory requirements07:35 Founder-leader, August Troendle09:30 Stress testing the bottleneck12:00 Games Workshop creates its own pinch point14:50 Shepherding Warhammer over the long term17:45 Mixing bottlenecks to reduce volatility20:05 Tidewater and the coming offshore vessel shortage23:30 Freeport-McMoRan feeds the US’s copper needs26:20 AI bottlenecks: silicon wafers and high-bandwidth memory30:00 Enduring versus fleeting bottlenecks31:25 Book choiceGlossary of terms (in order of mention): Adenovirus: A common type of virus that can cause mild illnesses such as colds, sore throats or conjunctivitis, but can also be modified for medical uses such as delivering genes into cells. Gene therapy: A treatment that works by adding, altering or replacing genes inside a patient’s cells to treat disease.Clinical trials: Research studies in people that test whether a medicine, treatment or medical approach is safe and effective. FDA: The US Food and Drug Administration, the regulator responsible for approving medicines, vaccines and medical devices in the United States. Contract research organisation: An organisation that helps biotechnology and pharmaceutical companies run clinical trials.Private partnership: A business owned by its partners rather than by public shareholders. Supernormal profits: Profits above what would normally be expected in a competitive market.Supply side: The part of an industry concerned with how much of a product or service companies can provide.Demand side: The part of an industry concerned with how much customers want or need a product or service. Rate limiter: The factor that determines the maximum speed at which something can grow, expand or be produced.Novel therapies: New types of medical treatments, often based on recent scientific advances.Intellectual property (IP): Legal rights over creations such as brands, stories, characters, designs, patents or software.Free cash flow: The cash a company produces after paying the costs needed to run and maintain the business.Energy transition: The shift from fossil-fuel-based energy systems toward lower-carbon sources such as renewables, batteries and electrification.Compute: The processing power needed to train or run AI models or other computing tasks. High-bandwidth memory (HBM): A type of advanced memory chip that can move very large amounts of data quickly to processors, making it especially useful for AI systems. Steam turbine: A device that uses steam to spin a wheel or rotor, converting heat energy into mechanical motion.
Transcribe →The active edge: the case for growth in uncertain times
Mar 1600:38:56Tap to summarizeA series of “extraordinary” events has made the environment more challenging for growth stocks. But “this level of trepidation can’t go on forever”, says Baillie Gifford partner Stuart Dunbar in this latest episode, suggesting that patient investors will benefit when stability returns and the markets value exceptional companies at a premium again. Stuart Dunbar is a director in Baillie Gifford’s Clients Department and is responsible for helping shape and communicate the firm’s investment philosophy.In this conversation, he considers how a succession of disruptive events – the most recent being the current war in the Middle East – has rattled markets and led investors to focus on companies’ short-term profits rather than their long-term potential.However, this period of flux will not last forever, he argues. And when we re-enter a period of stability, patience should be rewarded as markets recognise exceptional companies’ future earnings potential and price them accordingly. In the meantime, Baillie Gifford’s investment teams remain focused on finding and supporting businesses that will prosper from change and supporting their management to take the long view. And as Dunbar reveals, as the sources of growth broaden out, we are backing some companies that come as a surprise. Portfolio companies discussed include:Astera Labs – the semiconductor chip designer, whose products tackle data bottlenecks in AI datacentresIREN – the datacentre operator whose clients include MicrosoftMedpace – a contract research organisation that biotech and pharmaceutical companies hire to run their clinical trialsNu Holdings – owner of the Latin American fintech NubankSpotify – the audio streaming platform that lets people listen to music, podcasts and audiobooksWillScot – North America’s largest provider of temporary space rentals, leasing out modular offices, portable storage containers and classroom units Resources:Actual investors hubActual investing revisitedBaillie Gifford podcastsPrivate growth investingThe Compound and Friends podcastThe Success Equation Companies mentioned include:AJ BellAmazonAnthropicAstera LabsByteDanceIRENMedpaceMicrosoftNu HoldingsNVIDIASpotifyWillScot Timecodes:00:00 Introduction02:00 Active v passive03:35 “Know what we own”06:15 Building relationships with company leaders07:55 Causes and effects of uncertainty11:05 Beyond the Magnificent 712:45 A period of relative stability17:50 Compressed valuations19:25 Nubank and Medpace’s promise23:10 Meetings with clients25:40 Broader sources of growth28:15 Private equity growth31:25 Better-informed stock picking33:25 Staying independent and standalone35:45 “Wait until the market comes to its senses”37:10 Book choiceGlossary of terms (in order of mention): Latent heat: energy absorbed or released during a change of state, like ice melting, without a change in temperature.Active investing: trying to beat the market by choosing investments based on research and judgement.Passive funds: investment funds that track a market index rather than picking stocks actively.Quantitative approaches: investment methods that use data, models and statistics to make decisions.Market capitalisation weights: an index method that gives bigger companies a larger influence based on their total market value.Alignment of incentives: making sure different parties are rewarded in ways that encourage the same goals.Drawdowns: significant falls in the value of an investment from a previous peak.R&D: research and development – spending on innovation and new products or technologies.Backdate options: setting share-option dates retrospectively to make them more valuable, often controversially.Shareholder registers: the official records of who owns a company’s shares.Benchmark: a standard, often an index, used to compare investment performance.Magnificent 7 / Mag 7: the seven giant US tech stocks that have dominated market performance in recent years.GPU: graphics processing unit – a specialised chip often used for AI computing because it handles parallel tasks well.Sub-market multiple: a valuation lower than the market average.Strategic asset allocation: deciding how much to invest in broad asset classes like shares, bonds or private markets.Benchmark-aware: closely focused on performance relative to a benchmark index.Venture capital: investment in early-stage, high-growth private companies.Private equity buyout funds: funds that buy controlling stakes in companies, often using debt.Private equity growth: investing in more mature private companies that are expanding but not yet public.Roadshow: presentations by company leaders to investors ahead of an IPO or fundraising.Alternative asset classes: investments outside traditional shares and bonds, such as private equity or infrastructure.Path dependency: the idea that outcomes are shaped by the sequence of earlier decisions and events.
Transcribe →China’s new growth leaders: inventing, not copying
Feb 1300:32:16Tap to summarizeFrom new cancer drugs to batteries and robotics – China’s top-tier growth companies are forging paths of their own rather than following in the west’s footsteps. Investment manager Sophie Earnshaw names companies that have caught her eye and explains why being a long-term stock picker differs in China from elsewhere. Background:Sophie Earnshaw is a decision-maker on our China Equities Strategy and joint manager of the Baillie Gifford China Growth Trust. In this conversation, she tells Short Briefings… host Leo Kelion about a select group of Chinese companies breaking new ground, supported by the state’s efforts to become self-sufficient in more of today’s critical technologies and a leader in some of those of the future. Earnshaw also details how the “phenomenal rate” at which companies are born, scale and die in the country makes stock-picking a challenging task – making the access we have to company leaders, academics and other local expertise core to our mission of finding the best firms to invest in on behalf of our clients. Portfolio companies discussed include:- CATL – the battery maker whose products power electric vehicles worldwide and increasingly support the renewable energy sector- BeOne and Innovent Biologics – pharmaceutical firms developing the next generation of cancer drugs - AMEC and NAURA – semiconductor equipment makers enabling China to develop increased self-reliance in computer chips - Alibaba, ByteDance and Tencent – China’s ‘big tech’ companies, whose artificial intelligence tools are becoming embedded into people’s daily lives- MiniMax – the AI startup rolling out video and agentic tools at a fraction of the cost of western counterparts- Horizon Robotics – the automated driving tech provider with its eye on an even bigger opportunity. Resources:Baillie Gifford podcastsChina: a tale of two storiesChina investment strategy hub (institutional clients only)House of HuaweiPrivate investor forum 2025: investing in great growth companiesTrip notes: on the road with Baillie Gifford China Growth Trust Companies mentioned include:AlibabaAMECASMLBeOneByteDanceCATLHorizon RoboticsInnovent BiologicsJiangsu HengruiHuaweiMiniMaxSamsungNAURATencentTSMCXiaohongshu Timecodes:00:00 Introduction01:55 Joining the China Equities Strategy02:40 Intense competition04:00 The government’s influence06:10 CATL, the electrification champion08:45 Investing with a 5-year time horizon10:25 Shanghai office, local expertise11:45 Regulations and geopolitics14:30 China’s next Five-year Plan16:15 Innovent Biologics’ new cancer drugs18:10 Lower-cost clinical trials19:45 Being selective in semiconductors21:25 Investing in chip equipment makers23:00 China’s ‘big tech and AI’25:10 MiniMax making AI like ‘tap water’27:45 The road to robotics29:35 A market you can’t ignore30:30 Book choice Glossary of terms (in order of mention): Third plenum: a major policy meeting of China’s ruling Communist Party, often used to set big economic/political direction.Sovereign bond issuance: The government raising money by selling bonds (IOUs) to investors.Opportunity set: the range of investable companies available to choose from.Capex: capital expenditure – money spent on long-term assets like factories, equipment, or data centres.Fiscal deficit target: how much more the government plans to spend than it collects in revenue (taxes plus other income), expressed as a share of the economy.GDP: gross domestic product – the total value of goods and services a country produces in a year.Market capitalisation: the total value of a company’s shares (share price × number of shares).ESG: environmental, social and governance – how a company manages environmental impact, people issues, and corporate oversight.Large-form batteries: big battery packs used in things like electric vehicles and grid storage.Energy storage systems: large batteries that store electricity for later use (helping balance the grid).Generic drugs: copies of medicines whose patents have expired; usually cheaper, same active ingredient.Bi-specific (bispecific) drugs: drugs designed to bind to two targets at once (often to direct immune cells to cancer).ADC drugs: antibody–drug conjugates – antibodies that deliver a toxic payload to cancer cells.Out-licensing: selling rights to your drug/technology to another company (often for upfront + milestone payments).EUV machines: extreme ultraviolet lithography equipment used to make the most advanced chips.Foundry: a factory business that manufactures chips for other companies.Etch and deposition: steps in chipmaking – etch removes material to form patterns, deposition adds thin layers.Picks and shovels: a metaphor for companies that sell essential tools to an industry (rather than end products).Digitalisation: moving processes and services from offline to software and data-driven systems.Compute: the processing power (chips and servers) used to train/run AI.Large language model (LLM): an AI trained on lots of text to generate and understand language.Margins: how much profit a company makes per pound/dollar of revenue (after costs).Cloud business: selling computing power/storage/software over the internet instead of on a local machine.Algorithm layer: the method or software logic that makes the AI work (as distinct from the hardware).Gross margin: revenue minus direct costs (before overheads), a rough measure of product profitability.Assisted driving: features that help a driver (lane-keeping, adaptive cruise control, etc) but don’t fully replace them.Autonomous driving: a car driving itself with minimal or no human input.Software attachment rate: the percentage of customers who add paid software features and/or subscriptions.
Transcribe →Smarter models, sharper founders: growth investing in the AI era
Jan 1400:35:48Tap to summarizeWith developments in generative AI progressing at such a furious pace, how can investors cut through the noise to identify the companies that will really matter? Baillie Gifford’s Kyle McEnery shares his approach to meeting the entrepreneurs building the future – including his encounters with AppLovin, Anthropic, NVIDIA, Roblox and Reddit. Background:Kyle McEnery is an investment manager in our Long Term Global Growth Team (LTGG) and previously led Baillie Gifford’s Artificial Intelligence Research Project. In this conversation, he tells host Leo Kelion why AI’s ever-increasing capabilities make this one of the most exciting times to be a growth investor, and how leadership and culture act as signals in the noise to help identify companies with the greatest long-term growth potential. In addition to discussing which of the firms enabling and using today’s language-based ‘frontier’ AI models are leading the pack, he explains how efforts to understand and simulate real-world physics could unlock further progress. Portfolio companies discussed include:Anthropic – developer of the Claude AI models, which excel at coding, among other tasks.NVIDIA – the semiconductors firm whose accelerator chips are powering many of the advances in generative AI.Roblox – the video games platform whose Cube 3D technology allows creators to build objects and environments out of text-based descriptions.AppLovin – the ad-tech company whose AI-first strategy keeps the business lean and nimble.Reddit – the online discussion forum, whose authentic human conversations are gaining in value as a counterpoint to AI-generated output. Resources:AI and the future of everything: a long-term perspectiveAnthropic: why we are backing the AI frontrunnerLong Term Global Growth Strategy (institutional investors only)LTGG philosophy and process (institutional investors only)Private companies: from Anthropic to ZetwerkThe forge of intelligence: exploring the rise of physical AIShort Briefings on Long Term Thinking hub Companies mentioned include:Alphabet/GoogleAmazonAnthropicAppLovinHorizon RoboticsNVIDIARedditRobloxTesla Timecodes:00:00 Introduction – Dartmouth College’s artificial intelligence workshop01:50 From quantum to AI via asset management02:50 Creating and then culling a machine-learning initiative08:05 ChatGPT’s wake-up call10:35 Exceptional companies at the dawn of generative AI12:10 Anthropic’s appeal to business customers14:55 A winner-takes-all opportunity?17:05 Dario Amodei and the scaling laws19:10 NVIDIA’s foundational role in neural networks22:55 Making video game items in Roblox with AI25:00 AppLovin – a company built for the next era26:55 Reddit’s valuable conversational communities29:35 World models, spatial AI and the physical world32:35 Staying open-minded and humble33:35 Book choice Glossary of terms (in order of mention): Generative AI:AI systems that create new content such as text, images or code rather than just analysing data.Machine learning:AI techniques where systems learn patterns from data rather than being explicitly programmed.End-to-end, systematic (investment strategy):Fully automated, with decisions made by predefined rules rather than human judgement.Agentic AI:AI systems that can plan and carry out tasks autonomously rather than just responding to prompts.R&D:Research and development.GPT:OpenAI’s models, which power its ChatGPT chatbot.Natural language processing:AI that enables computers to understand and generate human language.Token:A chunk of text, such as a word or part of a word, used by language models.Foundation models:Large AI models that can handle a wide variety of tasks.Know your customer (KYC):Financial checks used by banks to verify customers’ identities and risks.Scaling laws:The idea that AI performance improves predictably as models, data and computing power increase.Compute:The processing power required to train and run AI models.Jevons’ paradox: The counterintuitive idea that efficiency gains can increase, rather than reduce, overall usage.CUDA:NVIDIA’s software platform for programming its chips for high-performance computing.Jensen:Jensen Huang, NVIDIA’s co-founder and chief executive.Metaverse:Shared virtual worlds where people interact, create and play online.Large language models (LLMs):AI systems trained on vast amounts of text to understand and generate language.Multimodal models:AI systems that can process multiple types of data, such as text, images and video.World models:AI systems that learn how the physical world works in order to predict and simulate it.Embodied AI:AI that learns through physical interaction with the real world, such as robots or vehicles.Imitation learning:Training AI by having it copy actions demonstrated by humans.
Transcribe →Emerging market companies leapfrogging western rivals
Dec 1600:28:29Tap to summarizeFrom Pony.ai launching a robo-taxi service during a Shanghai storm to E Ink revolutionising the way supermarkets label their shelves – emerging market companies are in many cases leapfrogging western counterparts. In this episode, investment manager Alice Stretch reveals to host Leo Kelion some of the most disruptive companies innovating at speed in Asia and Latin America. Background:Alice Stretch is an investment manager in Baillie Gifford’s Emerging Markets Equity Team. In this conversation, recorded as part of our annual Disruption Week briefings, she explores some of the growth companies in her portfolios turning constraints to their advantage and reducing friction in their customers’ lives. Companies discussed include: PolicyBazaar – the Indian insurance platform making it easier for people to protect themselves against life’s financial shocks.Nubank – the Brazilian digital lender extending access to banking and credit.Meituan – the food delivery and local services app extending its reach beyond China.MercadoLibre – the Latin American ecommerce and fintech giant expanding into advertising.Mobile World – the Vietnamese conglomerate that has expanded from mobile phones to competitively priced groceries.Sea Ltd – the Singaporean gaming, shopping and fintech group eyeing the possibilities of agentic AI.TSMC (Taiwan Semiconductor Manufacturing Company) – the world’s leading chip manufacturer.E Ink – the Taiwanese e-paper pioneer building on its ebook success to provide supermarkets with updateable price tags and marketers with low-power digital billboards.Pony.ai – the first driverless car company to offer a robo-taxi service in four of China’s most populous cities. Resources:Disruption Week Emerging markets: how we do what we doEmerging markets: from imitators to innovatorsEmerging markets: the next engines of growth (podcast)Emerging markets in 2050: growth in a changing worldImecShort Briefings on Long Term Thinking hub Companies mentioned include:AmazonByteDanceChromaE InkMercadoLibreMobile WorldMeituanNubankNVIDIAPolicyBazaarPony.aiSea LtdStellantisTSMC Timecodes:00:00 Introduction – Pony.ai takes to Shanghai’s roads02:00 The imitators become the innovators05:10 How PolicyBazaar benefits from not being locked into a legacy system 07:10 Nubank: reducing friction while expanding access to banking and credit09:25 MercadoLibre’s multi-act expansion leads it to advertising technology10:25 Mobile World’s move from selling handsets to groceries11:50 Ways Sea Ltd developed capabilities while operating under constraints13:45 Sea CEO Forrest Li’s ability to adapt and pivot15:25 Taking the long-term view and a generalist approach17:30 Studying the semiconductor industry with the help of Imec and TSMC19:45 Investing in Chroma and E Ink in Taiwan21:10 Walmart and other supermarkets adopt E Ink’s updateable price labels22:45 The case for investing in Pony.ai as a long-term growth investor24:10 Pony.ai’s cost advantage and international partnerships25:55 Taking macroeconomic and geopolitical risk into account27:15 Putting deep knowledge and research to our clients’ advantage
Transcribe →Private companies: from Anthropic to Zetwerk – and other new investments
Dec 100:31:31Tap to summarizeAI lab Anthropic, digital bank Revolut, Chinese social network Xiaohongshu and supply chain specialist Zetwerk count among Baillie Gifford’s most recent private growth company investments. These bold pioneers are part of an expanding asset class, representing some of the world’s fastest growing and most disruptive businesses. Investment manager Robert Natzler tells host Leo Kelion how and why we backed them on behalf of our clients. Background: Robert Natzler is an investment manager on our Private Companies Team and deputy manager of The Schiehallion Fund. In this conversation, recorded as part of our annual Disruption Week briefings, he brings you up to date on his team’s recent activity, bringing our tally of private company investments to more than 160, with a total value of over $10bn. Companies discussed include: Mottu – the motorcycle rental and service provider, serving gig workers and others in Latin America. Revolut – the digital bank that has surpassed HSBC and other traditional lenders in terms of its customer count. Anthropic – the frontier AI lab behind the chatbot and coding champion Claude. Xiaohongshu – the Chinese social network, also known as RedNote, with a strong and growing following, especially among young women. Zetwerk – the outsourcing specialist giving western brands and manufacturers the ability to broaden their supply chains beyond China. Resources:About Robert Natzler Disruption Week From code to culture: private companies shaping the world Private Companies Team Private growth: looking over the overlooked Short Briefings on Long Term Thinking hub Why we are backing Anthropic Companies mentioned include: Anthropic ByteDance Mottu Revolut Xiaohongshu (RedNote) Zetwerk Timecodes: 00:00 Introduction – Mottu CEO Rubens Zanelatto’s masterstroke 02:20 Investing in ‘real’ companies with ambitious leaders 05:20 Helping growth-stage companies prepare to go public 08:35 Exceptional companies in California and beyond 09:55 Mottu: providing motorcycles and maintenance to an underserved segment 13:10 Revolut: pursuing a different playbook to traditional banks 16:35 Gaining conviction in AI lab Anthropic 23:40 Dario Amodei’s appeal to other AI talent 24:30 Xiaohongshu (RedNote)’s popularity among women in China’s wealthiest cities 26:25 Zetwerk: expanding access to factories around the world 28:37 How Baillie Gifford clients can access private companies 29:35 Taking a global perspective on private companies
Transcribe →Where obsession meets opportunity: Japan’s ‘overlooked’ small caps
Oct 2300:31:37Tap to summarizeFrom using AI to create better weather forecasts to helping people with disabilities get their dream job, Japan’s small companies are a disruptive force.
Transcribe →Beyond the benchmark: Baillie Gifford CEO on why being different pays off
Sep 16Tap to summarize“If you’re trying to find the very best growth businesses on the planet – a benchmark isn’t a sensible place to start.” Baillie Gifford’s chief executive Tim Campbell explains the advantages of our style of active investing, the importance of long-termism and how AI fits into our process. Background:In April, Tim Campbell became Baillie Gifford’s chief executive and one of its managing partners. Earlier in his career, he was an investment manager before switching to Client Services, where he led our Emerging Markets Clients Team.In this podcast, he explores how our investment teams adopted a conviction-led approach that centres on each company's merits, regardless of its weighting in benchmark stock indices. He describes what we mean by long-termism and the importance of having the right incentives in place. And he explains why being “out of step” with some market trends helps us serve both society and our clients’ interests.The second half of the show focuses on changes afoot, ranging from further private company investments – including a recent holding in AI lab Anthropic – to our own adoption of artificial intelligence technologies and an exploration of new ways to access our strategies. Resources:Baillie Gifford: Actual investorsDisruption WeekDrayton and MackenzieOne Useful Thing: Ethan Mollick’s blogOur historyPrivate company investmentsShort Briefings on Long Term ThinkingThe Friction Project Companies mentioned include:AnthropicAmazonMercadoLibreNVIDIARunway AITimecodes00:00 Introduction02:10 From music in the Middle East to investing in Edinburgh03:15 Making the move to Client Services05:00 Rewriting the investment playbook06:30 Client hunger for benchmark agnosticism07:40 Active versus passive investing10:20 A mutual understanding with clients11:55 Drawdowns and hold discipline14:30 Defining long-termism17:00 Private company investments19:30 Investing in Anthropic and Runway AI24:55 ‘The mission doesn’t change’27:35 Book choice
Transcribe →Skin in the game: the hidden power of persistence
Aug 1500:29:48Tap to summarizeInside ownership can give companies an advantage when it comes to long-term growth. That includes having a leader or family with a substantial stake in the business. And it also covers firms with farsighted backers, such as philanthropic foundations, which encourage management to take the long view. From airline Ryanair to hearing aid specialist Demant, investment manager Jenny Davis explores how having skin in the game drives firms to act with persistence. Background:Jenny Davis is a Baillie Gifford partner and an investment manager in our International Alpha Team. She specialises in companies based outside the US that offer ‘quality growth’ – combining the potential for outperformance with durability.In this podcast, she explores how persistent, inside ownership works to the advantage of companies she has backed. Examples include firms with founders who have retained a significant stake, those with long-serving hired leaders rewarded with shares and other long-term incentives, companies with family owners where control has passed between generations, and businesses backed by a foundation or holding company with long-term objectives.Companies covered include:Discovery – the health insurer that has gone global, using data to nudge customers into improving their fitness.Ryanair – the European airline that benefited from its chief executive’s obsession with controlling costs.Technoprobe – the family-run ‘probe card’ specialist whose ability to spot faults in computer chips has kept pace with semiconductors’ increasing complexity.Demant – the hearing aid specialist backed by a charitable foundation, which has invested in getting closer to its customers.Scout24 – the German property portal whose independence Baillie Gifford helped preserve, allowing it to pursue a successful long-term growth strategy.Resources: Baillie GiffordA new age of discovery: the case for international (restricted to certain clients)Pioneers: 8 Principles of Business Longevity from Immigrant EntrepreneursShort Briefings on Long Term Thinking Companies mentioned include:DemantDiscovery LtdFerrariHermèsInvestor ABLVMHNovo NordiskRichemontRyanairScout24ShimanoTechnoprobeTSMCTimecodes:00:00 Introduction01:55 The “scenic route” to asset management03:00 Focusing on quality growth04:35 Persistence’s enduring edge05:45 Different types of inside ownership06:30 Discovery’s healthy nudges08:10 Adrian Gore’s visionary leadership09:45 How Michael O’Leary turbocharged Ryanair12:45 Ryanair’s scale advantage14:00 Technoprobe’s family leadership16:25 Engaging with Richemont’s Johan Rupert18:30 Demant’s long-term philanthropic backer20:55 Providing persistence’s benefits to Scout2422:55 Selling out of Credit Suisse24:30 Persistence and alignment26:10 Book choice
Transcribe →The ‘invisible’ millions: banking’s new frontier
Jul 1600:30:54Tap to summarizeFrom microloans for farmers to free savings accounts for the ‘unbanked’ to customised insurance for gig workers to a cheaper, faster way for migrants to send money to loved ones: a growing range of services is helping many of the world’s least advantaged citizens increase their financial resilience. Previously, banks and other traditional lending institutions overlooked these customers. But as impact director Ed Whitten explains, by backing the companies now involved, you have an opportunity to improve people’s lives and achieve strong growth. Background:Ed Whitten is an impact director in Baillie Gifford’s Positive Change Strategy. Its dual objective is to provide our clients with attractive returns while contributing to a more inclusive, healthy world. Whitten’s role is to ensure that the companies it holds fulfil the second part of that pledge. In this episode, he explores the topic of financial inclusion, explaining why the companies involved need to do more than simply provide access to loans, insurance and money transfers. Topics include how firms can use data and apps to deliver customised services that address specific people’s needs while protecting them from indebtedness. Whitten also explains how conversations with the companies Positive Change backs can nudge them towards better outcomes, such as providing customers with better financial education. And he explores the importance of helping people gain financial resilience against the effects of climate change and other events that could otherwise devastate their livelihoods. Companies covered include: Nubank – the digital-only bank used by most Brazilian adults that’s also growing in Mexico and Colombia. Grab – the south-east Asian ride-hailing and delivery service that provides loans and insurance to drivers and merchants using its platform. Remitly – the remittance service offering migrants a quick, low-cost and reliable way to transfer money to family and friends. HDFC Bank – the Indian lender expanding its rural branch network to explain face-to-face how its services can put customers on a better financial path. Resources:Case study: MaligaNubank’s Beyond Access studyPositive Conversations 2024The Song of the CellTrip Notes: Brazil (UK version / Ex-UK version) Companies mentioned include:ChimeBank Rakyat IndonesiaGrabHDFC BankMercadoLibreNubankRemitly Timecodes:00:00 Introduction02:05 From the British Army to impact investing03:40 A sustainable, inclusive, healthy world04:25 The different types of financial inclusion05:40 Eyes open to the risks of indebtedness06:45 Volatile repayment rates07:35 Beyond accessibility: the personalisation of products09:05 Partnering with CGAP and other development bodies10:25 Nubank’s Caixinha money boxes12:45 Nubank’s Mexican banking licence14:15 Ensuring growth comes with impact15:20 Grab’s loans and insurance16:40 Grab’s data-driven approach to risk19:45 The fast growth of remittances 21:25 Remitly’s cheaper money transfers22:35 Gaining market share from Western Union23:40 HDFC Bank’s expanding rural branch network24:55 Financial inclusion in advanced economies26:55 The ‘lucrative customers of the future’28:15 Book choice
Transcribe →