Thread by @mastersinvest

"Change dictates supply, demand, corporate fundamentals, sales and profits. Change is the oxygen that supercharges the outlier companies powering stock market returns." Baillie Gifford

Latest note .. 'Staying Ahead of Change' .. Great read....

magazine.bailliegifford.com/Global-Alpha-S…

'If we are to see what others don’t, and to spot potential, we must welcome different perspectives and steer clear of conventional inputs. This is why our efforts to build networks with academics, entrepreneurs, authors and other differentiated thinkers are so important.'

"We are not crystal ball-gazers. We do not foretell macroeconomic shifts. We observe change & seek out cos well positioned to benefit as it plays out over 5, 10, 15 yrs. Megatrends [eg rise of China, digitalisation, shift to electric vehicles] play out over decades, not quarters'

'When the world is changing so profoundly, it helps to have strong mental models for reference. Two of the team’s core models have helped guide us... 'Growth Categories' and an 'Annual Research Agenda.'

'Change is the only constant. Assuming the pause due to the coronavirus pandemic to be a permanent new reality would mean missing out on beneficial changes to come.'

'One simple metric applies: how can we double our money in 5yrs? Emphasis is firmly on fundamental growth in sales, earnings or book value. It’s hard to accomplish unless we can spot a potential change in investment case mkt doesn’t notice. Our team effort revolves around change'

'In a study of global stock market returns between 1990 and 2018, Professor Bessembinder established that less than 1 per cent of stocks contributed to all of the net gain made over US treasury bills.'