Trustnet Magazine 57 December 2019 | Page 18

Advertorial feature mark out the retina for removal. His rare combination of amazing scientific ability and understanding of business and finance could give Healios an edge should its drug programme succeed. Many small entrepreneurial companies emerge from a problem which needs solving. The result is fast-growing businesses that are creating entirely new markets. Bengo4.com (bengoshi is Japanese for lawyer) was set up by Taichiro Motoe following a road accident when he found it difficult to hire an experienced lawyer. In 2005 he started Bengo4.com as an online shop window for legal advice, [ BAILLIE GIFFORD ] 18 / 19 The key to thinking flexibly and creatively about competitive advantage is to focus on what might give a strong and sustainable edge in the future connecting lawyers with potential clients. Now over one-third of all the lawyers in Japan are signed up to this portal. The company has created a whole new market for online legal advice and has begun to monetise it. Advantage in this case stems from a combination of a visionary founder and a unique business model built around a compelling product offering. Such qualitative adjectives can be hard for conventional analysts to quantify and model. Clearly there is no standard assessment of a company’s market edge, as no two companies are ever the same, even those operating in the same industry. In most cases our view derives from a collection of seemingly mundane and intangible characteristics downplayed by conventional analysis, mostly due to intellectual laziness. The key to thinking flexibly and creatively about competitive advantage is to focus on what might give a strong and sustainable edge in the future, rather than getting too hung up on the present. Important Information This article does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are not statements of fact and should not be considered as advice or a recommendation to buy, sell or hold a particular investment. Baillie Gifford & Co and Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA). The investments trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not authorised and regulated by the Financial Conduct Authority. Investments with exposure to overseas securities can be affected by changing stock market conditions and currency exchange rates. Investment in smaller companies is generally considered higher risk as changes in their share prices may be greater and the shares may be harder to sell. Smaller companies may do less well in periods of unfavourable economic conditions. The trust’s exposure to a single market and currency may increase risk. A Key Information Document is available by visiting www.bailliegifford.com. All information is sourced from Baillie Gifford & Co and is current unless otherwise stated. Praveen Kumar / Investment Manger Praveen joined Baillie Gifford in 2008 and is an Investment Manager in the Japanese Equities Team. He previously worked for FKI Logistex. Praveen graduated BEng in Computer Science from Bangalore University in 2001 and gained an MBA from the University of Cambridge in 2008. TRUSTNET trustnet.com