
Masters in Business James Anderson on Why Fund Management Is 'Broken' (Podcast)
Feb 11, 2022
James Anderson, a longtime partner at Baillie Gifford & Co. and joint manager of Scottish Mortgage Investment Trust PLC, shares his unconventional views on the fund management industry. He argues it’s 'irretrievably broken' and critiques the short-term thinking prevalent in finance. Anderson identifies traits of explosive growth stocks like Tesla and emphasizes the need for qualitative assessments in disrupted markets. He also reflects on the challenges of European innovation and the importance of mentorship in navigating complex investment landscapes.
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Focus on Cities and Regions
- James Anderson focuses on specific cities and regions rather than entire countries, emphasizing cultural nuances.
- He cites TSMC in Taiwan and highlights the differences between New York and San Francisco capitalism.
Europe's Lagging Performance
- Europe's lagging performance is due to a lack of scalability, particularly in consumer-facing technology.
- Britain struggles to scale companies despite having strong academic and scientific foundations.
Biotech in Boston and India's Challenges
- Boston has become a center for biotech innovation, driven by the combination of venture capital and expertise in genomics and machine learning.
- James Anderson finds India challenging due to short-term focus and reliance on connections rather than merit.







