"Companies that capitalize on large-scale, secular changes in the global economy are best poised for long-term, spectacular growth."
Core Beliefs & Current Observations
New Solutions to Old Problems
The global economy is increasingly characterized by a “winner take all” dynamic, which makes it a vital for investors to be on the right side of the market.
MayTech Global Investors believes these winners are ones seeking new solutions to old problems.
Though the Global Growth portfolio is not a technology fund, MayTech Global's views about the march of technology inevitably leads us to focus on companies that are either developing ground-breaking technologies, or using these technologies to broaden and deepen their competitive advantages.
Technology: Unprecedented & Still Accelerating
Many investors still don’t fully appreciate that we are entering a period of dramatic transformation.
The reason this is happening is because after 50 years of Moore’s law (the number of transistors on a microchip doubles every 18 months), the number of transistors on a chip is incomprehensibly large, leading to ever smaller, faster and cheaper computing power. Advancements in technology, such as artificial intelligence, that seemed like science fiction five years ago are suddenly happening.
Geometric vs. Linear Change
The reason why investors underestimate the profundity of change today is a little more subtle.
Change is geometric and today we are moving onto a steeper part of the curve.
However, if your view is “zoomed-in” too much you will become a victim of what's known as "local linearity," and end up missing the big picture. Zooming in too closely on certain valuation metrics, for example, without an appreciation of how technology can affect a given company;s future growth prospects can lead to a valuation assessment that is far from the mark.