Growth or value? It's not a black or white choice

In this episode of "Short Briefings on Long Term Thinking," Malcolm Borthwick interviews Malcolm MacColl about growth versus value investing. MacColl argues that the traditional divide between growth and value is artificial and limiting, advocating for a focus on "growth in value" by identifying businesses with the potential for long-term profit and cash flow growth. He uses Amazon and Anthem as examples of companies that represent mispriced growth. The discussion shifts to inflation, with MacColl emphasizing the importance of focusing on the operational performance of individual assets rather than macro factors. He highlights sectors like energy, education, and healthcare as areas ripe for change and innovation, while cautioning against investments based on "reversion to the mean" in declining industries. MacColl concludes by reinforcing his belief in ingenuity and innovation, particularly the triumph of science demonstrated by the rapid development of vaccines during the pandemic.