Skin in the game: the hidden power of persistence

In this episode of "Short Briefings on Long Term Thinking," Leo Kellyan interviews Jenny Davis, a partner and investment manager at Baillie Gifford, about the concept of persistence in companies and how it can provide a lasting competitive advantage. Jenny shares her unconventional path to asset management and discusses how her background in music and psychotherapy informs her investment strategies. She emphasizes the importance of quality growth businesses with strong balance sheets and management teams, highlighting insider ownership as a key signal for identifying such companies. Jenny provides examples of companies like Discovery, Ryanair, and Technoprobe, illustrating how founder-led, family-owned, or institutionally supported businesses can achieve long-term success through innovation, cost management, and customer focus. She also touches on instances where Baillie Gifford actively engages with companies or chooses to sell when cultural or strategic issues arise, underscoring the importance of alignment and adaptability in investment decisions.