James Anderson: investors must pay "high multiples" for tech stocks

Investors must be willing to pay “unreasonable prices” for high-tech growth stocks to take advantage of the huge potential returns that these companies can deliver, says James Anderson, the co-manager of the £13.5bn Scottish Mortgage Investment Trust.

Many investors shrink from the valuations of firms such as Amazon and Tesla – which are Scottish Mortgage’s two largest positions – because they are obsessed with value investing or with tracking the market cheaply, he tells the Financial Times. But both these approaches badly misunderstand what drives long-term returns.

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