Baillie Gifford partner advocates for long-term investing

Stuart Dunbar, a partner at the British asset management firm Baillie Gifford, argues that long-term capital, rather than intensive daytrading, is the foundation for building strong companies. He emphasizes that patience and endurance are more critical to market success than focusing on quarterly fluctuations or immediate price movements.

Dunbar highlights Sweden as a prime example of an environment that fosters internationally successful businesses. He attributes this success to a combination of technical competence, innovation, and a culture of patient ownership driven by families and foundations. This long-term perspective allows companies to invest in the future rather than optimizing solely for short-term quarterly results.

As a practical example, Dunbar cites Atlas Copco, a company in which Baillie Gifford has held ownership for nearly forty years. He suggests that focusing on business quality over short-term stock price volatility has proven its value through such sustained investments.