ADVERTORIAL FEATURE
Baillie G
“ If you want to make longterm returns for your shareholders , then it ’ s worth diving beneath the headlines to find the stocks preparing to make a comeback ”
They zig , while others zag . They invest capital when others retrench , preparing to grow when demand returns . In December , Ryanair increased its order for Boeing ’ s 737 Max model from 135 to 210 , securing the aircraft far below their list price . It ’ s a brave move . The aeroplanes might be ready before the economic recovery from the pandemic begins . Yet a quieter , more fuel-efficient fleet will cement Ryanair ’ s competitive advantage for a decade to come . Controversy goes hand in hand with this style of investing . Just as airlines stoke debate with their carbon emissions , so too do the diversified mining and metals groups . Miners may go out of favour when the global economy slumps , but canny operators will still invest in their businesses , ready for demand returning . In the past , these stocks focused on coal , oil and gas , making it easy to write headlines saying these are yesterday ’ s , and not tomorrow ’ s , companies . Yet these assets – or should that be liabilities ? – have been sold . BHP and Rio Tinto supply iron ore to make steel for wind turbines , and copper and aluminium to build low-carbon infrastructure to electrify transport , heating and cooling . They ’ re the picks and shovels . You need these materials to build a low-carbon economy .
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