Skin in the game: the hidden power of persistence

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Recorded15 Aug 2025

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Inside ownership can give companies an advantage when it comes to long-term growth. That includes having a leader or family with a substantial stake in the business. And it also covers firms with farsighted backers, such as philanthropic foundations, which encourage management to take the long view. From airline Ryanair to hearing aid specialist Demant, investment manager Jenny Davis explores how having skin in the game drives firms to act with persistence. Background:Jenny Davis is a Baillie Gifford partner and an investment manager in our International Alpha Team. She specialises in companies based outside the US that offer ‘quality growth’ – combining the potential for outperformance with durability.In this podcast, she explores how persistent, inside ownership works to the advantage of companies she has backed. Examples include firms with founders who have retained a significant stake, those with long-serving hired leaders rewarded with shares and other long-term incentives, companies with family owners where control has passed between generations, and businesses backed by a foundation or holding company with long-term objectives.Companies covered include:Discovery – the health insurer that has gone global, using data to nudge customers into improving their fitness.Ryanair – the European airline that benefited from its chief executive’s obsession with controlling costs.Technoprobe – the family-run ‘probe card’ specialist whose ability to spot faults in computer chips has kept pace with semiconductors’ increasing complexity.Demant – the hearing aid specialist backed by a charitable foundation, which has invested in getting closer to its customers.Scout24 – the German property portal whose independence Baillie Gifford helped preserve, allowing it to pursue a successful long-term growth strategy.Resources: Baillie GiffordA new age of discovery: the case for international (restricted to certain clients)Pioneers: 8 Principles of Business Longevity from Immigrant EntrepreneursShort Briefings on Long Term Thinking Companies mentioned include:DemantDiscovery LtdFerrariHermèsInvestor ABLVMHNovo NordiskRichemontRyanairScout24ShimanoTechnoprobeTSMCTimecodes:00:00 Introduction01:55 The “scenic route” to asset management03:00 Focusing on quality growth04:35 Persistence’s enduring edge05:45 Different types of inside ownership06:30 Discovery’s healthy nudges08:10 Adrian Gore’s visionary leadership09:45 How Michael O’Leary turbocharged Ryanair12:45 Ryanair’s scale advantage14:00 Technoprobe’s family leadership16:25 Engaging with Richemont’s Johan Rupert18:30 Demant’s long-term philanthropic backer20:55 Providing persistence’s benefits to Scout2422:55 Selling out of Credit Suisse24:30 Persistence and alignment26:10 Book choice

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