The efficiency effect: how four companies shaped up for a new era

In this episode of Baillie Gifford's Short Briefings on Long Term Thinking, host Leo Kellyan interviews Gary Robinson, a manager in Baillie Gifford's U.S. equity growth team, about efficiency improvements in his portfolio companies and how the market underestimates their long-term impact. Gary draws parallels between the technology sector today and the consumer and industrial sectors after the global financial crisis, noting that companies forced to streamline operations often emerge stronger. The discussion covers how companies like Shopify, Meta, and Block are optimizing their businesses through measures like reducing side projects, leveraging AI, and centralizing decision-making to drive growth and innovation. Gary also shares his insights on Amazon's efficiency drive and the potential of its AWS cloud computing business, highlighting the importance of adaptability and a focus on core missions for long-term success.