If you think about the western movies, when the wagon trains were attacked their defensive position was to circle the wagons or turn inwards. There is a very good reason to circle the wagons and during the virus situation we have all turned inwards. Sometimes it is good to look outside to see what others are doing in the same situation.
In an article by Ian McGuggan examined a company in Scotland called Ballie Gifford, the company has been around for 112 years. For a company to exist for over 100 years, it look to the the long term. Lawrence Burns said when our firm invests we try to look to 5 to 10 years outwards and have a potential to multiply an investor’s money to multiple 10 to 15 times.
The company ins one of the world’s leading growth investors managing or advising on $290 billion assets for institutional investors around the world. The company while understanding people try to avoid loss, it is also important to recognize businesses that are capable of tremendous growth.
Ballie Gifford starting buying shares in Tesla in 2013 and is now the largest outside shareholders with a stake of $9 billion.
What other companies is Ballie Gifford taking positions in? Ocado Group is a British supermarket that has been running a purely online grocery business for almost 20 years. Ocado has partnerships with Kroger and uses robotics in its warehouses. Another company is HelloFresh SE, the German company that has the largest meal-kit operation in the world. Germany’s Delivery Hero, China’s Meituan Delivery.
The firm also owns shares in Spotify Technology for those who love music; Japan’s Softbank; China’s Alibaba Group and Canada’s Shopify. What unites all these companies is the room to grow.
Linking to dividend paying stocks, as investors we love companies that have the ability to generate profits on a yearly basis which allows them to pay dividends. For most of us, that should be the greatest part of your portfolio. The idea is your dividends allow you extra financial freedom, with some of them you can look and growth companies when they have do not burn through cash, they have gained traction in the marketplace. Dividend investors maybe own the growth companies when they first became public, but when they have are established and they will not lose money. Patience is a good thing.
There are more questions than answers, till the next time – to raising questions.