Why growth, why now?

All investment strategies have the potential for profit and loss, your or your clients’ capital may be at risk.

It’s been a torrid couple of years for growth investors. A nasty cocktail of rising rates and extreme risk aversion has driven huge market swings and a sharp dip in performance. People are understandably asking whether growth investing can still generate attractive returns from here.

In Why growth, why now? Mark Urquhart and Tim Garratt explain why the answer is an emphatic yes – especially from the current starting point, which feels like a once-in-a-generation opportunity.

At Baillie Gifford, we’ve seen this movie before – many times. Those who have ridden out previous reversals in investment style have historically enjoyed superb returns. While we can’t say for certain, there is every reason to believe that this time will be no different.

The world is swinging from an era of abundance to an era of limitation: in the supply of capital; in environmental resources; in trust between society and corporations – and between old and new superpowers. Mark and Tim's paper explores the characteristics of the companies that will thrive in this new era and explains why Baillie Gifford is well placed to find and hold them.

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The views expressed should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.

This communication was produced and approved in November 2023 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.

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