#220: Baillie Gifford - Value vs. growth: Where is the future of growth investing?

Growth investing centers on identifying companies capable of sustained disruption and earnings expansion over a five-year horizon, prioritizing long-term potential over current valuation metrics. Stuart Dunbar, a partner at Baillie Gifford, emphasizes that successful growth strategies require intensive fundamental research to distinguish between companies genuinely displacing incumbents and those merely benefiting from cheap capital. The transition to higher interest rates has ended the era where low funding costs masked mediocre business models, forcing a more disciplined approach to stock selection. While large language models like ChatGPT generate significant market excitement, the most profound investment opportunities lie in the practical application of artificial intelligence across sectors like medical diagnostics and autonomous logistics. Ultimately, navigating this landscape demands a focus on human ingenuity and long-term technological evolution rather than short-term market volatility or quarterly earnings reports.