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Investors face the challenge of making decisions in complex and uncertain environments, similar to professionals in various fields. The podcast emphasizes the necessity of thinking in probabilities to enhance decision-making strategies, equipping listeners with tools to navigate psychological biases. It suggests that understanding the different mindsets and frameworks used by industry experts can provide valuable insights into improving one's own decision-making processes. This convergence of perspectives highlights the broader implications of uncertainty across various domains.
The podcast features discussions among value investors who share varied viewpoints on how to approach investment strategies in the current market landscape. This includes insights from Nick Train and others on the intertwined nature of value and growth investing, highlighting how sometimes quality growth represents the best value investments. Furthermore, the conversations illustrate that leaving one's usual investing circle can lead to new ideas and sharper investment judgments, demonstrating the value of diverse perspectives. Engaging different investment philosophies fosters a deeper understanding of market dynamics and opportunities.
A significant theme discussed is the emergence of capital-light, subscription-driven technology companies that have changed the investment landscape. Experts point out that these businesses offer characteristics reminiscent of traditional quality growth investments, yet are often undervalued due to the market's resistance to change. The conversations reveal how traditional valuation metrics are being re-evaluated in light of these new paradigms, urging investors to adapt to the evolving nature of market opportunities. This shift reflects a broader transformation in the competitive landscape, blending old and new investment philosophies.
The ongoing debate between active and passive management is a focal point in various discussions, with arguments made for both sides. While passive investing has gained popularity, particularly during periods of market concentration, many investors still believe in the value that active management can provide through disciplined, research-driven investment approaches. Experts express that the recent market dynamics create fertile ground for active management to identify inefficiencies and capitalize on mispriced opportunities. Ultimately, the discussions support the notion that active management remains relevant, particularly when emphasizing long-term investment strategies.
Discussions around finding quality growth investments across various regions, including emerging markets, highlight the searches for businesses that demonstrate sustainable growth potential. Investors emphasize the ability to identify stocks that integrate environmental, social, and governance (ESG) factors, which not only appeal to ethically conscious investors but also possess long-term competitive advantages. One prominent case is how companies in emerging markets are altering their business models to cater to underbanked populations, showcasing the dynamic opportunities available in these sectors. As emphasis shifts towards sustainable growth, investors are encouraged to be agile in their approaches to capitalize on shifting market trends.
Recently we attended the London Quality Growth Conference and we’ve put together a special quilt episode, featuring many of the key speakers at the event. One of the things we love about recording this podcast and attending this type of conference, is it gives us a chance to step outside of our usual circle and have conversations with people who think differently. Whether it’s Value, Growth or Quality it’s all investing at the end of the day, and hearing new perspectives sharpens our own thinking. We’re joined by an incredible line-up of investors and allocators from the Quality Growth world. You’ll hear from the likes of Nick Train, from Lindsell Train, Anthony Brenton, from Turtle Creek, Richard Warne, from Copia Capital, Christopher Rossbach, from J. Stern, Oliver Wayne, from Redington, Stephen Clapham, from Behind the Balance Sheet, David Shapiro, from Sustainable Growth Advisers, Fabio Cecutto, from Willis Towers Watson, Kunal Desai, from GIB Asset Management, Simon Brewer, from the Money Maze podcast, Stephen Yiu, from Blue Whale Capital, Stephanie Niven from Ninety One, and Ronald Chan, from Chartwell Capital. We think there’s something powerful about walking across the proverbial aisle and we hope you enjoy these conversations as much as we did. Enjoy!
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Important information. This podcast is for investment professionals only.
Marketing material for Financial Profesusionals and Professional Clients only. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions.
Past Performance is not a guide to future performance and may not be repeated. Diversification cannot ensure profits or protect against loss of principal. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
Exchange rate changes may cause the value of investments to fall as well as rise. Investing in emerging markets and securities with limited liquidity can expose investors to greater risk. Private assets investments are only available to Qualified Investors, who are sophisticated enough to understand the risk associated with these investments. This material may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.
Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy.
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