Tapping into the superior business models of disruptors

While we are stock-pickers, we do not ignore the business cycle; analysing it helps us determine when to allocate capital to certain companies.

When there is tight supply in an industry it signals that returns are likely to rise. That is likely to be the case with UK brick manufacturing today, for example. In the UK overall, annual business investment is 30% lower than was expected before the referendum, had the UK voted to remain in the EU. This has a knock-on impact for productivity. Should businesses begin to feel they can look towards the future with a greater degree of clarity, there is a potential lag effect that could deliver a spike in investment spending. Comgest's Wittet on how to find disruptors in Europe The...