Just occasionally a book, or an interview gives me a little more insight into my preferred investing method namely Growth/QM. So it is with the interview with the Growth fund CEO Paul Black of WCM Investment with $200B of assets under management. It is a fascinating discussion which includes the desirability of Moat company culture aligning with its competitive advantage.

Almost as an aside Paul mentions that he particularly likes Moat companies where other companies R and D is sub-contracted to them. Paul believes that these type of outsourcing companies warrant a much higher valuation. I can think of 2 such UK companies; both of which I hold and have done particularly well for me. These R and D specialists are the monoclonal antibody developer Bioventix (LON:BVXP) and the vehicle testing company Ab Dynamics (LON:ABDP).

Can anyone add any more UK R and D outsourcers to this list?

Interview: http://capitalallocatorspodcast.com/2018/05/06/paulblack

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