Jeff Lewis, director at RobMac comments on the huge increase in the use of digital platforms because of lockdown. He believes that will it bring about fundamental change for many businesses and in turn investment decisions.
Jeff Lewis, director at RobMac
“The coronavirus crisis is acting as a catalyst massively accelerating the rate of technological adoption with take-up previously forecast over a decade now forecast over two-to-three years a leading fund manager has said.
Baillie Gifford, one of Edinburgh’s most highly regarded Fund Managers suggest that we will see a quickening in the ascendancy of digital platforms and innovative, nimble disruptors.
This will hasten the demise of stale, structurally challenged, frequently indebted incumbents.
There will be a drive for new ways of working and technological efficiency which alters the working dynamic and causes more traditional business models to become outdated.
COVID-19 is likely to be the catalyst to a massive digitally powered landgrab with the winners recognised over the next two to three years versus what might have ordinarily taken 10+ years.
This will significantly limit the number of firms that could feasibly enter these markets and will ensure that the spoils accrue to a smaller number of existing participants with a lot these changes affecting retail, software, healthcare and beyond.
As advisers we spend a lot of time ensuring we take note of this and recommending funds that look to the future and are long term investors.
This latest financial crisis has reminded us again that strong future returns are achieved taking a long term view, we hope the present bounce back will prevail and asset values will continue to increase on their long term path.”
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