This is Masters in Business with Barry Rittoltz on Bloomberg Radio.

This week on the podcast, I have an extra special guest.

His name is Tom Slater.

He's the head of the U.S. equities team at UK firm Bailey Gifford Headquartered in Edinburgh.

The firm has been around since 1908.

They manage pick a number almost $300 billion in assets.

They've had explosive growth and they are not your typical growth manager.

They run concentrated portfolios.

He referred to one of the funds they run as growth at an unreasonable price, but it's

worked out really well.

That fund is up 112 percent, almost 100 percent more than the S&P 500.

Really, this conversation is very much along the lines of what happens when you rethink

the investment process over long, long periods of time and make well thought out intelligent

adjustments to how you go about selecting companies, constructing portfolios, making cell decisions

which Tom points out is where so many investors go awry.

Your downside in anyone's stock is limited, pretty much to 100 percent, but your upside

is far, far greater.

As he points out, 4 percent or so of the total U.S. equity stocks are what has driven

all of the gains over the past century.

It becomes very important not to sell a stock that has potential to keep growing and if

you look at their portfolio grow substantially.

They own things like Tesla and Netflix and Alphabet, etc.

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