Baillie Gifford
For investors , spotting mispriced growth relies on seeing the big picture and pinpointing what it is that could transform expectations
regards , he quips , “ it ’ s perhaps the best value investment we ’ ve ever made .” The business was widely misunderstood in its formative years . Market inability to understand Amazon ’ s dynamism and failure to imagine how it would build out from ecommerce into media and cloud services led to significant mispricing over the long term . For other growth companies , getting the right price as an entry point and maintaining patience are prerequisites for compounding . Here , MacColl borrows a phrase from his colleague , Spencer Adair , who describes Anthem as “ a small car with a large engine ”. “ What he means ,” he says , “ is that you don ’ t realise it ’ s there until it accelerates away from you at the lights .” The business has compounded its profits at 10 per cent per annum over the past 10 years , roughly double the market growth rate . “ Although a fantastic growth business , it has never commanded a very significant multiple , which has allowed compounding to transfer into very significant underlying share price performance .”
Issue 82 - March 2022 / 21 /