Why this crisis favours growth stocks

In this episode of Short Briefings on Long Term Thinking, Malcolm Borthwick interviews Tom Slater, Joint Manager of Scottish Mortgage Investment Trust, about why growth companies have been more resilient than value stocks during the coronavirus downturn. Slater explains that growth companies are providing essential tools and adapting to changing social and work environments, while traditional industries face challenges like collapsing oil prices. He notes the importance of investing in robust companies that contribute positively to society, citing Amazon as an example. Slater also discusses the increasing understanding of genomics in healthcare, highlighting their investment in companies like Via Biotechnology, which are working on vaccines and treatments for infectious diseases. He also addresses how private company valuations are reflected in the portfolio and the independence of the unlisted valuation committee. Finally, Slater emphasizes that their long-term investment approach remains unaffected by the shift to remote work.