Scottish Mortgage’s Burns: Radical innovation always matters

Scottish Mortgage Investment Trust prioritizes long-term capital growth by identifying and holding transformational companies that drive market performance over decades. Deputy Manager Lawrence Burns emphasizes that the firm acts as an "investor in change," focusing on structural shifts like the biology revolution, energy transition, and the broader application of computing power. The investment philosophy defines risk as permanent capital destruction rather than short-term volatility, allowing the trust to maintain conviction in high-growth outliers despite market downturns. With approximately 30% of assets in unlisted companies, the trust employs a rigorous, independent valuation committee to manage private holdings. By providing patient capital and strategic support, the firm enables management teams to pursue long-term objectives rather than prioritizing short-term profitability, ensuring resilience across diverse economic environments and maintaining a focus on radical innovation.