Short Briefings on Long Term Thinking - Baillie Gifford

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 businesses using mined metals to make car batteries, banks serving populations with growing spending power and, perhaps surprisingly, one of the world’s leading catfish exporters.Resources: The Indonesian companies powering the green transitionBen Durrant LinkedIn pageHow Asia WorksHow the World Really WorksPast podcasts Timecodes:00:00        Introduction01:30      China’s success as a low-cost exporter03:15        Land reform’s role04:00        Good quality, low-cost labour05:45        South-east Asian countries’ advantage07:15        Vietnam’s growth opportunity09:30        Vin Hoan: exporting catfish11:45        Sourcing local insights13:30        Indonesia’s move up the value chain16:15        Clusters of expertise in Malaysia18:00        Looking beyond tourism in Thailand20:15        Moving up the value chain22:15        The attraction of growth investing in southeast Asian23:15        Paying attention to macroeconomics24:30        Book recommendation Follow us via:TwitterLinkedIn Companies mentioned include:FPTHyundaiSamsung ElectronicsVinh Hoan

Donald Farquharson, Baillie Gifford's head of Japanese equities, discusses why conditions seem favorable for a cohort of Japanese growth stocks. He highlights companies like Olympus, DENSO, and Nihon M&A Center. They also explore the history of Japan's economy, the importance of research and development in the automotive industry, misconceptions about Japan's market, and the investment strategies of Masayoshi Son.

The speaker shares their journey of joining Baillie Gifford and discusses the evolving investment strategy. They explore the growth and changes in Baillie Gifford since 1996. The importance of maverick individuals and lessons from financial crises are highlighted. They also discuss the book '1599' which provides historical insights.

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   Companies harnessing technology9:10   The next decade of growth12:00   Health innovation14:45   Interest rates and inflation19:00   Stress testing portfolios21:15   Guarding against group think22:30   Book recommendationsFollow us via:TwitterLinkedInEmailCompanies mentioned include: AmazonAppleASMLModernaNetflixSamsungTSMC 

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 by Reebok founder Joe FosterMy Years at Volkswagen by Carl HahnBaillie Gifford’s Trust magazineFollow us via:TwitterLinkedInEmailCompanies mentioned include:Analog DevicesAtlas CopcoCognexL'Oréal

Keystone Positive Change’s Kate Fox on thinking about the world in 2050 to spot opportunities today.Background: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.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.Resources:The second deep transition: Johan Schot’s theory of radical changeDeep Transitions Futures projectPrevious Short Briefings on Long Term Thinking episodesFollow us via:TwitterLinkedInCompanies mentioned include:Beyond MeatDeereNorthvoltTeslaUmicore

Discover the thriving niche players in Japan's economy, such as Shima Seiki and Shoei, often overlooked by investors. Explore the rise of small and medium-sized businesses (SMEs) in Japan, their global positions, and the dominance of Japanese sports brands. Learn about Descent's turnaround and investment strategies for SMEs. Hear about the positive business conditions in regions beyond Tokyo and the need for investors to explore different cities.

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.