A “deep sickness” in UK capital markets has stifled the growth of homegrown tech entrepreneurs and left London’s blue-chip FTSE 100 looking like an index from the 19th century, according to one of Britain’s top fund managers. (says Baillie Gifford’s James Anderson in the FT)
He adds…“Bad managers have a much easier time, because if they just obey what the combination of their bonus system and ESG tells them, they can survive . . . and get paid extremely well. It’s become more difficult for companies to really think about the task of building their competitive moats.”
If you allocate your money to fund managers but cannot distinguish between good and bad managers, you have a problem. The problem is not something you can see easily today. You can’t ‘feel it’ or ‘touch it’. But it’s still there. The consequences will be felt when you want to spend the money you’ve accumulated for yourself and your family. So how do you differentiate between ‘good’ or ‘bad’ managers now?
Start asking better questions.