Monthly Insight

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Amazon Enters Healthcare

In her insight about Amazon and the opportunity it is pursuing in healthcare, Zhixin Shu has identified a number of the ways Amazon is working on disrupting large and profitable parts of the healthcare industry to which it can apply its competitive advantages of technology, execution, scale and not least capital to build potentially large and highly profitable businesses. Read more »

Blockchain: Enabling the Next Step Change in Supply Chain Management

One of the potential long-term drivers of value generation could be blockchain. We talked last month about the discussion we hosted about blockchain in the supply chain with Bettina Warburg and Tom Serres of Animal Ventures, two thought leaders in the space. This month Katerina Kosmopoulou has put together a summary of the discussion in our insight on "Blockchain: Enabling the next step change in supply chain management". If you want to think about what is going to happen this quarter in three, five or ten years, blockchain and how it will enable a step change in corporate efficiency, sustainability and profitability would not be a bad place to start. Read more »

Getting There

Our friend Gillian Zoe Segal has spent five years interviewing 50 of the most successful people in all fields about their experiences and their lessons. Don’t believe us, believe Warren Buffet who told people at this year’s Berkshire Hathaway annual meeting that her book “Getting There” is a must read. Here is an excerpt that Gillian has kindly allowed us to circulate. We hope you find it interesting and if you do, please do us and our portfolios a favour and buy it on Amazon, talk about it to your friends on Facebook or Whatsapp, and look at Gillians videos on Youtube. Read more »

Sports Brands and Brands Equity

Our insight this month, written by Jean-Yves Chereau discusses how strong brands and brand equity as seen in the recent FIFA World Cup are key drivers for potential future investment growth. Read more »

Betting the Drugstore on Berkshire

We recently returned from our annual trip to the Berkshire Hathaway annual meeting in Omaha, Nebraska, with the same renewed enthusiasm and conviction in investing in quality and value for the long-term that we always have after the event. Our admiration for Warren Buffett and Charlie Munger, however, does not mean we never disagree with some of their investments. Apple is a case in point. It is now Berkshire’s single largest equity holding, representing $42 billion out of a total of $175 billion of liquid securities. Buffett and Munger have been grappling with the technology companies and their implications for the past several years and it has been fascinating to witness their learnings in real time. Our approached to investing is based more on Philip Fisher than Benjamin Graham, and we have long argued that the digital transformation stocks are entirely fundamental to the global economy and society as a whole. In our portfolios we believe we have an opportunity to buy some of these great companies now and to hold them for the long-term. It has been two years since Buffett and Munger started buying Apple, at a great price as it turned out, but we wrote in the Financial Times back then that it was the wrong play. Instead we argued Amazon, Alphabet and Facebook were much stronger digital companies, with growth that looked more sustainable than that of Apple. As Amazon and Alphabet continue to expand their businesses, and improve services, they are likely to do better than Apple over our long-term holding period of five to ten years and beyond. Berkshire’s incremental purchases have pushed us to think again about the the argument, which we were able to publish again in the FT. Our insight this month provides some further reflections on our trip to Omaha and includes the article in the FT. Read more »

Battle of the Brands

Our analysts Katerina, Zhixin and Giles have put together in our insight this month their thoughts on the opportunities and challenges for consumer stocks, highlighting the inherent quality these companies have and the value opportunity they represent. Read more »