Japan’s smaller companies represent a “niche and overlooked” asset class, but that’s precisely the growth opportunity, says Brian Lum. The Baillie Gifford investment manager reveals some of the standouts he’s recently met, including a firm using AI to forecast the weather more accurately and another helping people with disabilities get hired.Background:Brian Lum became lead manager of Baillie Gifford Shin Nippon investment trust and joint manager of our Japanese Smaller Companies Fund in May. In this episode, he shares stories from a busy trip to the country, his first in his new roles. And he explains why Japan enjoys some of the world’s best conditions to nurture innovative and disruptive growth businesses.Companies discussed include:Weathernews – a business safeguarding ships and planes from storms and helping convenience stores anticipate which goods will experience surges in demand.LITALICO – a firm that specialises in providing training to people with mental and physical disabilities.Soracom – a company blending generative AI with Internet of Things sensors.Seria – the retailer obsessing over every detail to make a profit from selling goods for the equivalent of 50p (65 cents).KOHOKU KOGYO – the manufacturer demonstrating high craftsmanship to ensure electric cars run safely and smoothly. Resources:Baillie Gifford Shin NipponDisruption WeekJapanese Smaller Companies FundQuantum Computing Since DemocritusShort Briefings on Long Term ThinkingSWCC Showa: rewiring JapanVirtual visionaries: Japan’s Cover Corp rules the VTubing realm Companies mentioned include:KOHOKU KOGYOLITALICONikkisoPsiQuantumSeriaSoracomSWCCWeathernews   Timecodes:00:00  Introduction01:55   Japanese influences02:25  A focus on smaller companies03:55  The Galápagos Syndrome06:25  Learned lessons08:00  Face-to-face meetings08:55   LITALICO training workers with disabilities12:55   Weathernews and climate change15:00   AI-enhanced weather forecasts16:35   Soracom mixes generative AI with the Internet of Things20:40  Seria’s detail-obsessed 100-yen shops23:15   KOHOKU KOGYO’s crafted components25:30  The long-term perspective26:30  A niche, overlooked opportunity28:30  Book choice

“If you’re trying to find the very best growth businesses on the planet – a benchmark isn’t a sensible place to start.” Baillie Gifford’s chief executive Tim Campbell explains the advantages of our style of active investing, the importance of long-termism and how AI fits into our process. Background:In April, Tim Campbell became Baillie Gifford’s chief executive and one of its managing partners. Earlier in his career, he was an investment manager before switching to Client Services, where he led our Emerging Markets Clients Team.In this podcast, he explores how our investment teams adopted a conviction-led approach that centres on each company's merits, regardless of its weighting in benchmark stock indices. He describes what we mean by long-termism and the importance of having the right incentives in place. And he explains why being “out of step” with some market trends helps us serve both society and our clients’ interests.The second half of the show focuses on changes afoot, ranging from further private company investments – including a recent holding in AI lab Anthropic – to our own adoption of artificial intelligence technologies and an exploration of new ways to access our strategies. Resources:Baillie Gifford: Actual investors (https://www.bailliegifford.com/actual)Disruption Week (https://www.bailliegifford.com/disruptionweek2025)Drayton and MackenzieOne Useful Thing: Ethan Mollick’s blog (https://www.oneusefulthing.org/)Our history (https://www.bailliegifford.com/en/uk/individual-investors/about-us/philosophy-and-values/our-history/)Private company investments (https://www.bailliegifford.com/en/uk/individual-investors/about-us/private-companies/?tab=companieshttps://www.bailliegifford.com/about-us/private-companies/?tab=companies)Short Briefings on Long Term ThinkingThe Friction Project Companies mentioned include:Anthropic (https://www.anthropic.com/)Amazon (https://www.aboutamazon.com/about-us)MercadoLibre (https://news.mercadolibre.com/en/acercade)NVIDIA (https://www.nvidia.com/en-gb/)Runway AI (https://runwayml.com/)Timecodes00:00 Introduction02:10 From music in the Middle East to investing in Edinburgh03:15 Making the move to Client Services05:00 Rewriting the investment playbook06:30 Client hunger for benchmark agnosticism07:40 Active versus passive investing10:20 A mutual understanding with clients11:55 Drawdowns and hold discipline14:30 Defining long-termism17:00 Private company investments19:30 Investing in Anthropic and Runway AI24:55 ‘The mission doesn’t change’27:35 Book choice

Inside ownership can give companies an advantage when it comes to long-term growth. That includes having a leader or family with a substantial stake in the business. And it also covers firms with farsighted backers, such as philanthropic foundations...

From microloans for farmers to free savings accounts for the ‘unbanked’ to customised insurance for gig workers to a cheaper, faster way for migrants to send money to loved ones: a growing range of services is helping...

Emerging markets are reshaping the global economy, and a convergence of powerful, long-term trends is accelerating this shift. These include surging demand for commodities, exploding middle-class spending power and booming inter-regional trade. Investment specialist Andrew Keiller reveals some of the standout growth companies positioned to capitalise on this transformation and why now might be the perfect time to take advantage. Background:Andrew Keiller is a partner in Baillie Gifford and an investment specialist in our Emerging Markets Clients Team.In this episode, he discusses how some of the fastest-growing developing economies are driving change in the world and the forces that could further hasten that trend. The discussion builds on his recent paper, Emerging markets in 2050: growth in a changing world, which identifies long-term structural shifts tilting the odds in favour of standout companies in Asia, Latin America and eastern Europe. In the podcast, he expands on this by identifying some of the companies that could be big winners, including:* the lithium miner SQM (Sociedad Química y Minera de Chile), which is set to benefit from a mismatch in supply and demand for the critical ingredient to electric car batteries and other energy storage systems * the South Korean high bandwidth memory chipmaker, SK Hynix, whose products are critical to training artificial intelligence systems at speed* the ‘super-app’ operator Kaspi.kz, which provides everything from bill payments, banking and travel bookings to shopping, maps and messaging *  the Singaporean ecommerce, fintech and gaming conglomerate Sea, whose chief executive has ambitions to extend into further sectors* China’s biggest coffee chain, Luckin Coffee, which is giving the country’s 1.4 billion citizens a passion for the beverage with its ever-changing menu of inventive recipes In addition, Keiller discusses the implications of President Trump’s tariffs and why many Chinese companies still offer an exciting investment opportunity. Resources: Emerging markets in 2050: growth in a changing world (https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2025-q1-emerging-markets-in-2050-10053698/)Emerging markets: our philosophy (https://www.bailliegifford.com/insights/ic-video/2024-q2-emerging-markets-our-philosophy-10046781/)Emerging markets: rethinking the opportunity (https://www.bailliegifford.com/insights/ic-article/2024-q4-emerging-markets-rethinking-the-opportunity-10051128/)Finding high-calibre growth companies in emerging markets (podcast) (https://www.bailliegifford.com/insights/ic-article/2024-q1-high-calibre-emerging-markets-firms-10046529/)Luckin Coffee: looking forward (https://www.bailliegifford.com/insights/ic-article/2024-q2-em-monthly-april-luckin-coffee-10046862/)Kaspi's super-app (https://www.bailliegifford.com/insights/ic-article/2025-q1-trust-50-trip-notes-kazakhstan-10053695/)South-east Asia’s rising export stars (podcast) (https://www.bailliegifford.com/insights/ic-article/2023-q4-south-east-asia-s-rising-export-stars-10041012/)SQM: powering the future (https://www.bailliegifford.com/en/uk/institutional-investor/insights/ic-article/2025-q1-lithium-powering-the-future-10053932/)The Time-Travelling Economist by Charlie Robertson Companies mentioned include:Kaspi.

Which UK growth firms have the greatest long-term potential? Prime Minister Sir Keir Starmer has pledged to “turbocharge” his government’s growth strategy after the US’s introduction of new tariffs. It promises to prioritise a handful of growth-driv...

Are European stocks coming back into favour? After years of underperformance, many of the continent’s companies appear undervalued when compared to their historical prices and US counterparts. Investment manager Stephen Paice suggests that a group o...

Three technologies – quantum computing, reusable space rockets and nuclear fusion – could change the trajectory of human progress. Investment manager Luke Ward explains how a trio of private companies are bringing them closer to fruition.

One way to find great investment opportunities is to ask yourself what must change over the years ahead. In this episode, Baillie Gifford partner Stuart Dunbar explores the increased use of robotics to fill gaps in the workforce and medical advances that help keep healthcare affordable, among other transformational themes. Background:Stuart Dunbar is a client relationship director and coordinates Baillie Gifford’s global marketing and product development activity, which includes responsibility for the firm’s Actual investors campaign (https://www.bailliegifford.com/en/uk/individual-investors/about-us/actual-investors/?utm_campaign=Actual+3&utm_medium=shortlink&utm_source=advert).For this Short Briefings… episode, he challenged himself to identify five transformational growth drivers that are both inevitable and investable. His picks cover:* the rise of robotic systems that can make sense of their immediate environment and act autonomously* the intelligent design of drugs and other efforts to deliver less costly, more effective healthcare* the energy transition to renewables and electrification of transport* greater dependence on the infrastructure underpinning digital payment systems* the dawn of automated transport, including driverless trucks and delivery dronesDunbar explains the factors making these forces of change necessary, including the ageing populations of many developed countries, the resulting labour shortages and rising medical budgets.He also names some of the companies we have backed that could benefit, either by pioneering new or better ways of doing things or by playing critical roles in the involved supply chains. These range from John Deere & Co, whose self-driving tractors and precision-applied pesticide technologies help farmers increase yields and cut costs, to Nexans and Prysmian, whose extra-high-voltage cables connect offshore wind turbines to onshore energy grids.Resources:Actual investing: why thinking differently matters (https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2023-q2-actual-investing-why-thinking-differently-matters-10030238/)Christiana Figueres: stubborn optimism (https://www.globaloptimism.com/why-stubborn-optimism)Eureka Alert: Cheryl Mehrkar’s robotic surgery (https://www.eurekalert.org/news-releases/1065599)Michael Lewis: Going InfiniteStuart Dunbar on growth investing (video) (https://www.bailliegifford.com/insights/ic-video/2023-q2-investment-beliefs-global-videos-growth-investing-10020541/)Zeke Faux: Number Go UpPast Short Briefings… episodes Companies mentioned include:Adyen (https://www.adyen.com/)Amazon (https://www.aboutamazon.com/about-us)Aurora Innovation (https://aurora.tech/)CATL (https://www.catl.com/)Coupang (https://www.aboutcoupang.com/)Deere & Company (https://www.deere.com/en/)Enphase (https://enphase.com/)Intuitive Surgical (https://www.intuitive.com/)Keyence (https://www.keyence.com/)Moderna (https://www.modernatx.com/)Netflix (https://about.netflix.com/en)

The US’s transformational upgrade of its drainage, power and road networks is a long-term investment opportunity hiding in plain sight. In this podcast, Michael Taylor reveals some of the outstanding companies involved and makes the case that the markets have yet to fully appreciate the advantages working in their favour. Background: Michael Taylor is an investment manager in Baillie Gifford’s US Alpha strategy. In this Disruption Week briefing, he explains why years of neglect coupled with the destructive consequences of wild weather and our insatiable appetite for data-processing power have led the US to embark on a massive renewal of its physical infrastructure.  Taylor suggests that many of the companies creating long-term value benefit from supply advantages, which help them defend their commoditised products’ prices. These range from ownership of gravel quarries, which are difficult to get planning permission for, to the use of a gigantic, portable plastic drain-making machine. In addition, Taylor discusses what a second Trump presidency might mean for the sector and why finding standout companies involves travelling off the beaten track. Resources: Disruption WeekBuilding back: the great US infrastructure opportunitySpotting the winners from the great US infrastructure renaissance Companies mentioned include: Advanced Drainage SystemsEatonComfort Systems USAMartin MariettaNVIDIAStella-Jones Timecodes:00:00 Introduction1:35    Exceptional businesses confronting an exceptional problem3:20   The US v global infrastructure opportunity4:35   Donald Trump’s second presidency6:40   The benefits of patience7:35   Wild weather8:45   Investing in Advanced Drainage Systems11:05  Labour shortages12:15  Stella-Jones’s wooden telegraph poles14:05  Tree-spotter specialists16:15  Martin Marietta’s supply-side advantage18:55  Recycled aggregates’ limitations20:15  Finding US infrastructure investments21:45  Comfort Systems USA and keeping datacentres cool24:20  “Massive in terms of magnitude of spend and duration”

Many of the world’s most exciting, high-growth and disruptive companies are private. Moreover, the entrepreneurs running them are typically keeping them private for longer before trading their shares on public stock exchanges – and in some cases hav...

China is transitioning from a property-led economy to one focused on advanced manufacturing. It already leads the world in electric car production and the batteries that power them. And it’s also a growing force in renew...

Upheaval can create opportunity. Baillie Gifford’s Japan Team seeks out companies that will derive the greatest long-term benefit from transformational forces impacting business and broader society. In this podcast, investment manager Matthew Brett identifies four ‘structural growth’ drivers and the portfolio companies taking advantage of them. Background:Matthew Brett is the investment manager of The Baillie Gifford Japan Trust and our Japanese Fund, as well as co-manager of the Japanese Income Growth Fund. In this episode of Short Briefings on Long Term Thinking he discusses four forces creating long-term growth opportunities: -        Japan’s late embrace of digitalisation-        the rising spending power of its Asian neighbours-        the accelerated adoption of industrial automation-        the unmet health needs of an ageing populationBrett also names some of the Japanese companies driving these changes or otherwise gaining advantage, including ecommerce conglomerate Rakuten, skincare beauty firm Shiseido, machine vision specialist Keyence and Alzheimer’s drug developer Eisai.  Resources:Japan: the next opportunity (https://www.bailliegifford.com/insights/?page=1&search-term=japan%3A+the+next+opportunity)Kohei Saito: Slow Down – How Degrowth Communism Can Save The Earth Companies mentioned include:Calbee (https://www.calbee.co.jp/en/)DMG Mori (https://www.dmgmori.co.jp/en/)Eisai (https://www.eisai.com/index.html)Keyence (https://www.keyence.co.uk/)KOSÉ (https://corp.kose.co.jp/en/global/)PeptiDream (https://www.peptidream.com/en/)Rakuten (https://global.rakuten.com/corp/)Shiseido (https://corp.shiseido.com/en/)SoftBank (https://group.softbank/en) Timecodes:00:00    Introduction1:45      From psychology to investment2:25      Changing Japan3:15      Japan’s distinguishing market characteristics4:15      Visiting companies and other equities research6:00      Performance versus the TOPIX8:00      Defining digitalisation8:30      Leaving paper behind10:15    Rakuten’s online enterprise10:50    The advantage of QR barcode payments11:30    Rakuten’s loyalty points scheme12:25    Accelerating automation and industrial robots

Sometimes, you have to take a step back to leap forward. Over the past couple of years, Meta, Amazon, Block and Shopify are among the growth companies to have made efficiency cuts following the pandemic. Gary Robinson, an investor in Baillie Gifford’s US Equity Team, says that’s made them more agile and resilient – qualities that will let them take advantage of artificial intelligence and other opportunities to drive long-term growth. Background: Gary Robinson is joint manager of the Baillie Gifford US Growth Trust, a manager of the American Fund and a partner in our firm. In this episode of Short Briefings on Long Term Thinking, he explores how four leading internet-focused firms have streamlined their operations and reallocated resources to become more adaptable during a period of rapid change.Robinson draws a parallel with companies that made cutbacks after the global financial crisis to suggest that the markets may have underestimated how much growth can be unlocked by leaders taking a hard look at their firm’s spending, organisational structure and business priorities.Robinson suggests that recent efficiency drives will help Shopify, Meta and Amazon pursue AI-related opportunities that could meaningfully increase their earnings. And at Block, efforts to bring two products closer together could help the firm challenge Visa, Mastercard and American Express. Resources: Behind The Tech: Tobi Lütke: CEO and Founder, Shopify (https://www.microsoft.com/en-us/behind-the-tech/tobi-lutke-ceo-and-founder-shopify)Dwarkesh Podcast: Mark Zuckerberg – Llama 3, Open Sourcing $10b Models & Caesar Augustus (https://www.dwarkeshpatel.com/p/mark-zuckerberg)Bent Flyvberg: How Big Things Get DoneCyril Northcote Parkinson: Parkinson’s Law, and Other Studies in Administration More from Gary Robinson: Lessons from evolutionary biology (https://www.bailliegifford.com/insights/ic-article/2024-q1-investment-lessons-from-evolutionary-biology-10043697)Why companies should embrace chaos (https://www.bailliegifford.com/insights/ic-video/2021-q3-how-harnessing-chaos-can-make-companies-more-nimble-podcast-audio-ins-we-0810) Companies mentioned include: Amazon (https://www.aboutamazon.com/)Block (https://block.xyz/)Meta (https://about.meta.com/uk/)Netflix (https://about.netflix.com/en)Shopify (https://www.shopify.com/about) Timecodes: 00:00    Introduction01:40    A background in biochemistry02:55    The appeal of American companies03:30    Parallels with the global financial crisis

Emerging markets have sometimes promised more than they have delivered, but circumstances may be tipping in growth investors’ favour. Will Sutcliffe, head of our Emerging Markets Team, explains why it’s an opportune time to invest in the asset class. Background: Will Sutcliffe is the head of Baillie Gifford’s Emerging Markets Team and co-manager of our Emerging Markets Leading Companies Fund. In this episode of Short Briefings on Long Term Thinking, he brings his 23 years of experience in the field to explain what makes the specialism different from other types of growth investing. He makes the case that finding exceptional growth companies at attractive valuations is only part of the equation. Investors must be mindful of the broader macroeconomic environment, he explains, to avoid getting caught out by currency swings or spiralling debt costs. This leads him to conclude that recent resilience in emerging market economies could point to a favourable outlook for the asset class’s growth stocks. All this only matters to our portfolios if there are exceptional businesses to invest in, and Sutcliffe argues that the emerging markets are home to an increasing number of world-class companies. They range from the Taiwanese chip maker TSMC to the energy, retail and telecoms conglomerate Reliance Industries. Resources: Emerging markets: why bother? (https://www.bailliegifford.com/insights/ic-article/2023-q3-emerging-markets-why-bother-10040076)Stock story: Pinduoduo (https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-video/2024-q1-pinduoduo-stock-story-10044944/)South-east Asia’s rising export stars (https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2023-q4-south-east-asia-s-rising-export-stars-10041012/)Jio Financial Services (https://www.jfs.in/)Natura (https://www.naturaeco.com/)PDD Holdings (https://investor.pddholdings.com/)Pinduoduo (https://en.pinduoduo.com/)Reliance Industries (https://www.ril.com/)Temu (https://www.temu.com/about-temu.html)TSMC (https://www.tsmc.com/english)Gabriel Garcia Marquez: Until August Timecodes:00:00    Introduction01:45    Joining the Emerging Markets Team03:15    A ‘terrifying’ baptism of fire05:00    Emerging markets’ ‘dirty little secret’05:45    Qualifying for emerging markets status06:45    Higher-calibre companies08:00    Macroeconomic resilience09:30    US-China tensions and Russia’s invasion of Ukraine12:00    Investing in China13:45    PDD Holding’s Pinduoduo and Temu

A new medicine that can help patients lose 15 per cent of their body weight could have far-reaching consequences for healthcare. Wegovy mimics a hormone the gut releases, reducing appetite and slowing digestion to delay hunger’s return. Research is also underway into other potential health benefits. In this podcast, Baillie Gifford investment manager Ross Mathison discusses its maker, the Danish pharmaceuticals manufacturer Novo Nordisk, which became Europe’s most valuable company in 2023. Background:Ross Mathison is an investment manager in our Global Income Growth Team, co-manager of our Global Income Growth Fund and deputy manager of the Scottish American Investment Company (SAINTS). In this episode of Short Briefings on Long Term Thinking, he discusses how medicines that mimic the glucagon-like peptide-1 (GLP-1) hormone could help tackle the growing problem of weight gain. Forecasts suggest that by 2035, more than half the world’s population will either be overweight or obese. That’s likely to lead to more people suffering associated diseases, putting health budgets under further strain. Novo Nordisk initially researched GLP-1s as a diabetes treatment. The company is the world’s biggest insulin producer, but it’s the release of its weight-loss drug Wegovy that’s transformed its growth prospects. News that medical trials suggest that the therapy could also reduce the likelihood of heart attacks, strokes and other cardiovascular threats among some patients has driven further investor interest. Mathison explains that there could be further health benefits beyond this, how even more effective treatments could follow and why Novo Nordisk’s manufacturing edge and connection to the world’s biggest charitable foundation bode well for its future. Resources:New England Journal of Medicine: Semaglutide trial (https://www.nejm.org/doi/full/10.1056/NEJMoa2032183)Novo Nordisk cardiovascular trial press release (https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=166301)Novo Nordisk kidney trial press release (https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=166327)Novo Nordisk Foundation (https://novonordiskfonden.dk/)Wegovy (https://www.wegovy.com/)World Health Organization obesity factsheet (https://www.who.int/news-room/fact-sheets/detail/obesity-and-overweight)Hitting Against the Spin Timecodes:00:00    Introduction1:40      What are GLP-1s?4:00      Scientific breakthrough5:05      Obesity: a disease, not a choice6:45      Novo Nordisk’s drug, Wegovy08:10    Prescription costs

What distinguishes companies that will thrive from those that will perish? In this episode, we explore three traits that mark out the companies set to surge ahead from those more likely to struggle: 1.      They solve real-world problems2.      They are financially strong and disciplined3.      They are highly adaptable Baillie Gifford partner Tim Garratt discusses these characteristics, gives examples of companies that exhibit them and explains why this feels like a once-in-a-generation opportunity to be a long-term growth investor. BackgroundTim Garratt is an investment specialist, overseeing the institutional clients who invest in our Long Term Global Growth strategy and leading our broader client specialist network. He recently co-authored the paper Why growth, why now?, which reaffirms our beliefs about how growth investing can generate attractive returns.In this episode of Short Briefings on Long Term Thinking, he discusses how interest rate rises, restricted amounts of capital and geopolitical tensions are causing a stock market shake-out. And he explains why this plays to the advantage of patient investors who focus on the fundamentals when picking growth stocks. Garratt gives examples of how companies, including Netflix, Roblox, Shopify and Amazon, fulfil the criteria we seek. And he explains how Baillie Gifford itself is adapting to the times, exploring the use of machine learning and other tools to hone our investment process.Resources:Why growth, why now? (https://www.bailliegifford.com/literature-library/insights/why-growth-why-now-10041062/#page=4)We’re all climate hypocrites now (https://newsociety.com/books/w/we-re-all-climate-hypocrites-now)See & Spray (https://www.deere.com/en/sprayers/see-spray-ultimate/)Netflix engagement report (https://about.netflix.com/en/news/what-we-watched-a-netflix-engagement-report) Timecodes:00:00        Introduction1:30           From abundance to limitation03:45        Implications for investors05:20        Real world problems: supply chains07:30        Deere and hi-tech farming09:00        Financial strength and discipline09:50        Netflix and pricing power12:00        Keeping watch on margins14:15        China’s electric vehicle makers16:15        Adaptability and new business models16:50        Roblox adds AI19:30        Microsoft, Amazon and environmental costs21:45        Sea and the importance of culture23:00        How Baillie Gifford is adapting25:05        ‘Why now?’ for growth investing26:55        Book choice

Show notesAmazon and DoorDash take different approaches to bridging the physical and digital worlds. Amazon has built an extensive infrastructure of warehouses, logistics ne...

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 transition (https://www.bailliegifford.com/insights/ic-article/2023-q1-trust-46-why-indonesia-matters-10019268/)Ben Durrant LinkedIn page (https://www.linkedin.com/in/btgdurrant/)How Asia Works (https://groveatlantic.com/book/how-asia-works/)How the World Really Works (https://www.penguin.co.uk/books/319141/how-the-world-really-works-by-smil-vaclav/9780241989678)Past podcasts (https://www.bailliegifford.com/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:Twitter (https://twitter.com/BaillieGifford)LinkedIn (https://www.linkedin.com/company/baillie-gifford/) Companies mentioned include:FPT (https://fpt.com/en)Hyundai (https://www.hyundai.com/)Samsung Electronics (https://www.samsung.com/)Vinh Hoan (https://www.vinhhoan.com/)

Is the time ripe for Japanese growth stocks? Donald Farquharson is Baillie Gifford’s head of Japanese equities and knows the market better than most. In the latest episode of Short Briefings on Long Term Thinking he draws on a recent visit to the country to explain why conditions seem favourable for a cohort of domestic companies with long-term mindsets. Background There’s a sense of renewed confidence and enthusiasm in the air in Japan. The country is home to the world’s second-largest market for equities after the US, but it doesn’t get a corresponding degree of attention from international investors. The reason is partly because of the nation’s past weak economic performance. But a recovery is underway, and critically, many of its growth stocks have strong balance sheets, big ambitions and a positive story to tell. In this episode, Baillie Gifford partner Donald Farquharson draws on his experience of investing in Japan since 1990 to explain why he’s particularly optimistic about the opportunities ahead for a select group of companies. They include the medical equipment maker Olympus, the car components manufacturer DENSO and the takeover advisory service Nihon M&A Center.He also shares why he thinks some misunderstand Japan and why it’s no coincidence that many of the companies he backs are founder-run.Resources: Discovering the unsung superstars of Japanese technology (https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2023-q3-trust-47-tomorrows-tall-trees-10035561/)From Yahoo! to Z Holdings: the evolution of an online pioneer (https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2023-q1-from-y-to-z-10019475/)Japan: the small businesses with big opportunities (https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2023-q1-japans-smaller-stars-10018820/)Investing in Japan: distance lends perspective (https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2022-q4-investing-in-japan-10017089/)Donald Farquharson’s LinkedIn page (https://www.linkedin.com/in/donald-farquharson-74aba528/?originalSubdomain=uk)Aiming High: Masayoshi Son, Softbank Group and Disrupting Silicon Valley (https://www.hachette.co.uk/titles/atsuo-inoue/aiming-high/9781529338614/)Past podcasts (https://www.bailliegifford.com/en/uk/individual-investors/short-briefings-on-long-term-thinking/) Timecodes:00.00      Introduction01:40        Investing in Japan in the 1990s03:00        ‘Undiscovered’ Japan03:55        How banks and other businesses changed05:30      A sustainable recovery?06:45        An exciting time for growth companies07:45        Strong balance sheets08:15        Olympus and endoscopes09:45        Diversity on the board11:00      Nihon M&A Center and company takeovers12:50        DENSO, a major supplier to Toyota and others14:30        Toyota City, home to one million people15:35        Competition for car batteries16:30      Baillie Gifford’s advantage in Japan17:45        Looking beyond the headlines18:20      Book recommendation: Masayoshi Son and Aiming High19:45        Investing in founder-led firms Follow us via:Twitter (https://twitter.com/BaillieGifford)LinkedIn (https://www.linkedin.com/company/baillie-gifford/)Email (https://www.bailliegifford.com/en/uk/individual-investors/email-sign-up/) Companies mentioned include: