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:
The changing face of growth
Four cardinal questions for growth investors
Mark Urquhart’s LinkedIn page
1599: A Year in the Life of William Shakespeare
Past podcasts
Timecodes:
00.00 Introduction
1:20 Joining Baillie Gifford in the pre-Google era
03:45 An evolving attitude to growth companies
05:20 Looking for stronger compound growth
06:35 Investing in Microsoft
08:00 The quest for companies like Hermès
09:55 Learning to be open-minded in Japan
12:10 The importance of mavericks
13:40 How Tesla hit its targets
14:40 Investing in times of crisis
17:35 What the Covid pandemic teaches growth investors
23:05 Today’s most exciting growth companies
25:15 Book recommendation
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Companies mentioned include:
Alphabet (Google)
Apple
ASML
Dexcom
Don Quijote
Hermès
MercadoLibre
Microsoft
Netflix
Peloton
SpaceX
Tesla
