- Buying companies with a global leadership position within their industry can be a smart investing play.
- The manager of a $5.7 billion fund that focuses on doing that explained to Insider why.
- He also picked out 10 companies that exemplify what he looks for in a stock pick.
Rather than massive capitalizations or dominant market shares, the primary reason companies are brought into the $5.7 billion Brown Advisory Global Leaders fund is their ability to problem solve.
For co-managers Mick Dillon and Bertie Thomson, their selection process relies not on their view of what constitutes leadership, but that of the end customers.
“If you are the best solver of your customer’s problem, they will think of you as the leader. They will keep coming back, generating a really great business over time. While it might sound flippant, if you haven’t got a customer, you haven’t got a business.”