Innovative firms spend their money on research and long-term investment, rather than on share buy-backs and paying out dividends. To benefit from the significant upside of these stocks, investors must think in decades rather than quarters, and be prepared to stomach higher levels of earnings volatility. In contrast, investors who pursue low-volatility strategies will find themselves exposed to short-term-focused business models which are doomed to die smoothly and slowly over the next 10 years.

Presentation  (11 min)  |  Podcast

ABOUT THE AUTHOR

Tim Garratt is a Partner at Baillie Gi...