It’s impossible to fully comprehend how all the exponential trends we’re experiencing are interlinked or deduce what will emerge. There are too many second- and third-order effects involved. But as investors, we can try. I believe the conditions are in place to create the next trillion-dollar companies. And we’re here to find them at the earliest stage possible.
Great companies can come from anywhere
The most valuable ideas and enriching experiences happen when we uproot ourselves and lean into uncertainty with a growth mindset. This is what I discovered from having lived in three continents and being an investor in six different strategies within Baillie Gifford. Experiencing constant change has made me not only radically open-minded about the future but also a fan of imperfection and a relentless optimist.
Extraordinary companies can arise in unexpected places. So I cast my net wide and am ready to explore unconventional ideas to find and invest in businesses with transformative potential.
Aligned with the (playful) underdogs
I greatly admire Elon Musk and Richard Branson in the way they have both created multiple businesses through first-principles thinking. Each venture they launch focuses on being unique and delighting customers by putting them at the centre of everything. There’s also a clear underdog spirit to them, a twinkle in the eye and a playfulness that keeps them going decades on. As Branson sees it: “Fun is one of the most important - and underrated - ingredients in any successful venture. If you’re not having fun, then it’s probably time to call it quits and try something else.”
Three legs to getting to ‘yes’
I look for three qualities in founders: trustworthiness, skin in the game and humility. We’re privileged to meet some of the smartest and best-connected people on the planet. But we only invest our clients’ capital if we trust those leaders will retain their integrity and guard against complacency.
We back companies for the long term. And this is much easier a rollercoaster to stomach if founders are aligned with significant skin in the game. As the late Charlie Munger said: “Show me the incentive, and I will show you the outcome.”
Of course, the cone of uncertainty couldn’t be wider for these young companies. We’re dealing with exponential changes, complex adaptive systems and S-curves piled on top of one another. Despite the enormous pressure founders are in to seemingly have all the answers, I have a lot of respect for those who answer, “I don’t know”. If they are on the path to creating something exceptional, chances are nobody else does either.
Location
Edinburgh, Scotland
Favourite book
Gary Klein: Seeing What Others Don’t
Get in touch
Send a message to Alexander, or email the Private Companies Team directly.
Important information
Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK clients and is authorised and regulated by the UK Financial Conduct Authority. Baillie Gifford Overseas Limited is not licensed under the Regulation of Investment Advising, Investment Marketing and Portfolio Management Law, 5755-1995 (the “Advice Law”) and does not carry insurance pursuant to the Advice Law.
Baillie Gifford Overseas Limited markets and distributes Baillie Gifford’s range of collective investment schemes to Qualified Clients and Qualified Investors in Israel, as listed in the First Addendum to the Regulation of Investment Advising, Investment Marketing and Portfolio Management Law, 5755-1995 (the “Advice Law”) and in the First Addendum to the Israel Securities Law, 5728-1968 (the “Securities Law”). Detailed disclosure of the collective investment schemes can be found within this website and in the relevant scheme prospectus.
Baillie Gifford Overseas Limited does not provide investment advice. If you are in any doubt about whether an investment is suitable, you should seek independent advice.
No action has been or will be taken in Israel that would permit a public offering or distribution of the Funds mentioned in this website to the public in Israel. This website and the Funds mentioned herein have not been approved by the Israeli Securities Authority (the “ISA”). In addition, the Funds mentioned in this website are not regulated under the provisions of Israel’s Joint Investment Trusts law, 5754-1994 (the “Joint Investment Trusts Law”). This website and the Funds mentioned herein will only be distributed to Israeli residents in reliance on an exemption from any advice or marketing restrictions [in a manner that will not constitute “an offer to the public” under sections 15 and 15a of]/[in reliance on an exemption from the prospectus requirements under] the Israel Securities Law, 5728-1968 (the “Securities Law”) or the Joint Investment Trusts Law, and any guidelines, pronouncements or rulings issued from time to time by the ISA as applicable.