Tom Slater on Growth Investing (Podcast)

Long-term, concentrated growth investing relies on identifying companies with the potential to capture massive, evolving market opportunities over multi-year horizons. Success in active management requires a high active share and the discipline to ignore short-term market noise, as the vast majority of stock market returns are driven by a tiny fraction of exceptional companies. Rather than fixating on near-term earnings multiples, investors should prioritize a company’s culture, competitive edge, and ability to innovate in large, underpenetrated sectors. Holding winners through significant volatility—such as Amazon and Tesla—is critical, as premature selling truncates the impact of these high-performing assets. Furthermore, the rise of "scale as a service" models, exemplified by companies like Shopify and Stripe, provides new avenues for growth by enabling smaller merchants to compete on equal footing with established industry behemoths.