Why quality still matters

Distribution is just about getting things from A to B, right? Think again. At scale, it’s a highly complex business, combining inventory management, technology, customer relationships, and a relentless focus on efficiency.Few companies do distribution better than Ferguson, North America's leading specialist supplier of plumbing, HVAC and waterworks solutions. Whether it’s a small copper fitting or a 40-foot pipe, if a tradesperson needs a product, chances are Ferguson has it in stock and can deliver it the next day.It all started in Virginia in 1953, when a small plumbing firm made a simple promise: have what the tradesperson needs, where and when they need it. Seventy years later, that promise still holds. Today, the company supplies over one million products to one million customers from a best-in-class distribution network. From AI data centres to home renovations, Ferguson has it covered. In this episode of Digging Deeper, George Dent speaks to Ferguson stock champion Alan Edington. Together, they explore what sets the company apart, the diverse opportunities supporting future growth, and why we believe its long record of market share gains has further to run.To watch the full video version of this conversation, head to our website at walterscott.com/research. SpeakersGeorge Dent, Client Investment ManagerAlan Edington, Investment Manager and Sustainability IntegrationResourcesDigging Deeper – Understanding Lonza https://www.walterscott.com/research/audios/talking-research--digging-deeper---understanding-lonza/Digging Deeper – Understanding Inditexhttps://www.walterscott.com/research/videos/digging-deeper-understanding-inditex/Digging Deeper – Understanding Keyencehttps://www.walterscott.com/research/videos/digging-deeper-understanding-keyence/Digging Deeper – Understanding Wolters Kluwerhttps://www.walterscott.com/research/videos/digging-deeper-understanding-wolters-kluwer/ Our podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.

Medical technology continues to transform patient care, from minimally invasive heart procedures to robotic surgery. Yet despite this progress, the sector has faced a challenging few years amid policy uncertainty, hospital capacity constraints and shifting investor sentiment. In this episode, Katie Boyce sits down with Investment Manager Paul Loudon to discuss why medtech has historically been fertile ground for long-term investors, how Walter Scott assesses recent challenges, and where the most compelling opportunities lie today. Key takeawaysMany of the sector's recent challenges appear cyclical rather than structural in nature. Concerns over obesity drugs and healthcare spending may have overshadowed resilient demand trends.Strong research and company engagement help uncover attractive long-term opportunities.To watch the full video version of this conversation, head to our website at walterscott.com/research. SpeakersKatie Boyce, Investment WriterPaul Loudon, Investment ManagerResourcesArticle from Research Journal 16 - Robotic surgery's next frontier: https://www.walterscott.com/research/articles/Robotic_surgery_next_frontier/Our podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.

Back in May 2026, we welcomed clients to Edinburgh for our Research Conference. Over three days, an exceptional cast of speakers shared insights, challenged assumptions and offered fresh perspectives on the forces shaping our world.Among the standout sessions was a conversation with Michael Bhaskar, author, researcher and Head of Microsoft AI Futures. In this special episode of Talking Research, we are delighted to share Michael's discussion with investment manager Tom Miedema, exploring one of the most consequential technologies of our time.Some of the key themes from their conversation include:Why advances in computing power, reasoning models and AI agents are accelerating the pace of change beyond what many thought possible.Whether AI could prove to be the next Industrial Revolution, transforming productivity, industries and economic growth on a global scale.How society can benefit from increasingly powerful AI while navigating challenges ranging from cybersecurity to ensuring AI remains under human control.From trillion-fold increases in computing power to the prospect of "humanist superintelligence", this is a wide-ranging and thought-provoking discussion on where AI is today, where it may be heading, and what that could mean for all of us.And look out for the release of the 16th edition of our Research Journal, which features an article by Michael Bhaskar.As always, we would be delighted to hear your feedback or answer any questions.Enjoy the listen!Our podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.

Lonza sits at the nexus of two of the most powerful long-term trends in global healthcare: outsourced drug production and the rise of biologic therapies. In this episode of Digging Deeper, Murdo MacLean sits down with investment manager Tom Miedema to explore the critical role this little-known Swiss group plays in advanced drug manufacturing.Together, they examine the foundations of Lonza’s competitive advantage, the resilience of its market leadership, and the potential for AI‑driven drug discovery to usher in an exciting new phase of growth.To watch the full video version of this conversation, head to our website at walterscott.com/research. Please note, there was an editorial change at 16:12 minutes on 27 May 2026, where the market share figure was corrected from “30–35%” to “15–20%”.Key takeawaysLonza is a mission-critical partner to many of the world’s most advanced pharma companies. The company is benefiting from the long-term shift towards outsourced drug production. In a world of near-shoring and trade barriers, Lonza’s global manufacturing footprint should drive market share gains. SpeakersMurdo MacLean, Client Investment ManagerTom Miedema, Investment Manager ResourcesDigging Deeper – Understanding Inditexhttps://www.walterscott.com/research/videos/digging-deeper-understanding-inditex/Digging Deeper – Understanding Keyencehttps://www.walterscott.com/research/videos/digging-deeper-understanding-keyence/Digging Deeper – Understanding Wolters Kluwer https://www.walterscott.com/research/videos/digging-deeper-understanding-wolters-kluwer/ Our podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.

This podcast was recorded on 27 February 2026, prior to recent events in the Middle East.Markets are currently shaped by concentration and powerful narratives, with share prices often drifting far from underlying fundamentals. In this episode of Talking Research, Francis Sempill is joined by Roy Leckie and Alan Edington to discuss portfolio performance and whether investors risk overlooking many high‑quality businesses. They also explore how the team is navigating AI‑related volatility and explain why discipline and diversification remain essential to long‑term outcomes.This episode marks the first time Talking Research has been filmed, giving the audience the option to watch as well as listen. Key takeawaysMarket behaviour is being driven more by narratives than by underlying company fundamentals. Quality growth companies are delivering resilient earnings, despite sometimes limited near‑term share price recognition. Capturing the long-term AI opportunity requires more nuance than the binary ‘winner or loser’ framing that dominates today’s market. SpeakersFrancis Sempill, Head of Client ServiceRoy Leckie, Executive DirectorAlan Edington, Investment Manager ResourcesThe AI scale advantage: On the road on the US West Coast https://www.walterscott.com/research/articles/the-ai-scale-advantage--on-the-road-on-the-us-west-coast.htmlWhat we look for in a company https://www.walterscott.com/research/articles/what-we-look-for-in-a-company.html Our podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.

What does AI look like on the ground in California? Fresh from a week on the US West Coast, Investment Manager Tom Miedema shares what he heard in boardrooms and labs – from data centre build‑outs and custom chips to the realities of software adoption and monetisation. This episode cuts through the hype to explore who is likely to win, where supply chains are straining, and why some AI milestones may be further away than headlines suggest. Higher margin, lower risk – why we like/there’s a lot to like about Microsoft and Amazon’s data centre model Winning the “daily knife fight” – why experience matters in the AI infrastructure build outAI is disrupting the software-as-a-service industry, but many incumbents are learning fastMonetisation of AI has been a slow burn, but an inflection point may be comingHow “the march of the nines” explains why some AI progress might be further away than we think  Listen to the podcast to learn more.ResourcesDwarkesh PodcastAndrej Karpathy — AGI is still a decade away Ilya Sutskever – We're moving from the age of scaling to the age of researchSatya Nadella — How Microsoft is preparing for AGIRichard Sutton – Father of RL thinks LLMs are a dead endArtificial meat is harder than artificial intelligence — Lewis BollardOur podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.

Charlie Macquaker reflects on 34 years at Walter Scott, sharing insights from his early days to recent research trips in China and Sweden, and discusses the enduring principles that underpin the firm’s investment approach.Visiting companies and engaging directly with management teams reveals insights that go far beyond desk-based analysis. As the current AI frenzy echoes the dotcom days, why healthy scepticism is vital for effective long-term investing.China’s rapid infrastructure and technological development is reshaping the global competitive landscape.While the investment landscape evolves, discipline, adaptability, and trust in the research process remain fundamental to successListen to the podcast to learn more.Resources-          Inside China's chip challenge: On the road in China (article with video)Can China wean itself off overseas technology and become self-sufficient in semiconductors? Tom Miedema and Michael Scott visited the country to find out more.Our podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.

Stablecoins are now bypassing banks, AI agents are making purchases and global payments are accelerating rapidly. Jamie Zegleman discusses the technologies reshaping the payments landscape, cross‑border flows, and everyday commerce.Stablecoins are scaling fast, with over $250bn in circulation and trillions in annual transaction volume — driven by speed, cost efficiency, and growing adoption across crypto trading and international money transfers.Agentic commerce is becoming real, as AI agents begin to transact autonomously —booking travel, making purchases, and navigating payment networks with minimal human input.Payment giants are evolving, with Mastercard and Visa integrating stablecoin and AI agent capabilities to remain central to digital transactions and cross-border flows.European fintech firms are leading innovation, with the likes of Wise, Adyen, Revolut and Monzo solving complex infrastructure challenges and setting new standards in digital finance.Listen to the podcast to learn more.Resources-          Do stablecoins spell danger for Visa and Mastercard? (article) Stablecoins are growing in popularity, but Investment Manager Jamie Zegleman thinks they are unlikely to dislodge the global payments duopoly of Visa and Mastercard.Our podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.

Curious about how Walter Scott is charting a course through volatile stock markets? In this podcast, Investment Manager AJ Kyle and Executive Director Roy Leckie delve into three critical areas:Stock-by-stock scrutiny: Evaluating the supply chains of companies such as Intuitive Surgical to understand their tariff exposure.Project-based analysis: Identifying both defensive and offensive opportunities arising from the tariffs.New idea generation: Exploring opportunities in sectors such as precision instruments and Japanese IT solutions.Additionally, you’ll find out which areas investors might want to avoid during such turbulent times.Join AJ and Roy as they also reflect on Warren Buffett, one of the greatest active stock pickers of all time. Mr Buffett recently announced his retirement as CEO of Berkshire Hathaway at the age of 94. They share lessons from his illustrious career that can be applied to investing.Listen to the podcast to learn more.Resources-       Tariff Tempests (article) The tariff turmoil has shaken markets, as investors ponder the potentially profound changes to the economic landscape. Roy Leckie, Executive Director, discusses some of the challenges ahead in these uncertain times, but remains confident that the world’s leading companies can navigate their way through the current maelstrom.Our podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.

How did one man’s prudent attitude spark a multibillion-dollar business empire? On a recent trip to the US, investment analyst Dr Oriana Beaumont visited Fastenal to understand how the industrial giant is still driven by its founder’s razor-sharp focus on cost control.Fastenal has transformed itself from a retailer of industrial products to a strategic supply-chain partnerThe Fastenal model continues to evolve, with roomy retail spaces being turned into high-efficiency warehouses dedicated to key accountsA cost-conscious founding philosophy drives innovation and benefits for customersResources:Beyond the ‘Korea Discount’: On the Road in South Korea (article)South Korea’s rich ecosystem of cutting-edge companies offers opportunities for investors. Investment manager Connor Graham reflects on some of the standout meetings from his recent week-long trip to the country.Our podcast episodes are intended solely for institutional investors, investment professionals, investment consultants and financial intermediaries only and should not be construed as investment advice or a recommendation. Any stock examples discussed are given in the context of the theme being explored, and the views expressed are those of the presenters at the time of the recording.