Digitalisation, cloud computing, and AI are driving global data centre expansion. Big tech companies need more computing power for their AI services, increasing data centre infrastructure and environmental impact. In this investment letter, Comgest ESG Analyst Liudmila Strakondonskaya emphasises the need for effective governance and decision-making to balance AI growth with ESG considerations.

Is a stock at 12x earnings really a bargain? Not necessarily. In this thought-provoking piece, Comgest CIO and Portfolio Manager Franz Weis challenges the conventional wisdom around valuation metrics. He explains why long-term success comes from quality growth and earnings visibility — not chasing cheap-looking stocks. Discover how avoiding the “value trap” is central to Comgest’s Quality Growth investment philosophy.

Over the past two years, the AI "Gold Rush" has led to the MSCI World Index becoming concentrated in just a handful of AI-related stocks. In this investment letter, Comgest’s Global Equity team explains why we typically focus on AI infrastructure companies with high barriers to entry and strong pricing power, while avoiding early-stage AI models and software due to intense competition and potential commoditisation.

Investors often focus on tangible assets like inventory and machinery, but human capital—employee knowledge, skills, and experience—is oftentimes undervalued. French leather goods company Hermès exemplifies how human capital is the quiet force behind long-term success.

Qu'est-ce qui fait des États-Unis le marché boursier le plus performant du monde ? Si beaucoup mettent en avant leur technologie, leurs installations de recherche et leurs abondantes ressources naturelles, Comgest estime que le véritable moteur de la croissance américaine est la productivité. Notre stratégie actions américaines vise à exploiter cette efficacité en se concentrant sur les entreprises qui font plus avec moins de ressources.

Investor focus in Japan has recently shifted towards cyclical stocks like automotives, commodities, and financial services, driven by a weak yen and rising global interest rates. However, Comgest believes that companies involved in structural growth trends, such as digitalisation and ageing populations, are better positioned for consistent long-term returns.