Growth? Value? Neither. Why only 1% of companies really matter.

Many of our clients and other contacts have been asking in recent months about the apparent breakdown in historical patterns of growth and value investment styles.

Historically, in a big economic downturn such as this one we would have seen stable consumer-type companies such as food producers and grocery chains significantly outperform. 

 

This time, capital-light and online companies have shown much more resilience in terms of share prices. In either case, we think company specifics in the presence of disruption are far more important than style. 

 

Some of the differences from the historical norm are easily explained by the specific challenges of Covid-19, but the underlying trends in the economy were already there. We don’t expect a simple reversion to mean when the economy normalises. On our website, we gather together the various articles we’ve written on this topic in recent years in one place. We hope you find this to be a useful resource.

Stuart Dunbar

Partner

Recent articles

Actual

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Long-term thinking

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