Show Notes
Every investor is being told the same story: the money is in AI, US technology and the trade that has worked for the last fifteen years. Hugh Yarrow believes the biggest opportunity is somewhere very different. He explains why some of Britain's highest-quality businesses are trading at their cheapest valuations since the Global Financial Crisis, why compounding beats chasing trends, and why the best way to build wealth is to get rich slowly.
Hugh Yarrow is the co-founder of Evenlode Investment and lead Portfolio Manager of the Evenlode Income fund. He has run the same investment strategy since launching the fund in October 2009, investing in high-quality British market leaders with durable competitive advantages and holding them for the long term.
He explains: ▪️ Why he calls it a "get rich slowly" strategy ▪️ Why quality UK companies are trading at their cheapest valuations since 2009 ▪️ Why most of his portfolio could double over the next five years ▪️ Why the companies labelled "AI losers" could actually be AI underdogs ▪️ Why he won't own banks, oil producers or mining companies ▪️ How he identifies businesses that can compound for decades
(00:00:00) Intro (00:02:34) The "Get Rich Slowly" Investment Strategy (00:05:43) How Hugh Builds a Winning Portfolio (00:09:19) Why Quality Investing Is Back in Favour (00:13:46) The DNA of a Great Business (00:17:37) How to Build a Low-Risk, High-Return Portfolio (00:20:25) The Power of Compounding Explained (00:21:41) How Many Stocks Do You Actually Need? (00:24:05) The Sectors He Won’t Invest In (00:25:44) How Big Can The Strategy Get Before It Breaks? (00:26:32) Margin Of Safety, And What Happens When He Gets One Wrong (00:30:06) How To Avoid Groupthink And Over-Processing (00:33:41) What The Portfolio Is Trading On Today (00:34:08) Why Free Cash Flow Tells You More Than Profit (00:37:57) Dividends, Payout Ratios And The UK Buyback Boom (00:41:06) Are Companies Buying Back Shares At The Right Price? (00:42:52) Would Warren Buffett Invest in This Fund? (00:44:24) What Higher Interest Rates Did To Quality Companies (00:47:52) Could Most of These Companies Double? (00:49:55) Why Foreign Investors Are Buying UK Companies (00:51:33) Are Value Investors Finally Coming Back? (00:52:32) The AI "Underdogs" Everyone Is Ignoring (00:56:19) Is The AI Trade Sucking Liquidity Out Of Markets? (00:58:45) Why The Business Model Matters More Than The CEO (00:59:58) Halma: The Hidden Champion Of The UK Market (01:02:36) Howden Joinery: Built For The White Van Man (01:05:05) RELX And The Power Of Ploughing Money Back In (01:06:27) How Much of the Portfolio Depends on the Economy? (01:11:04) What's On The Watch List (01:12:47) What Success Looks Like In Ten Years (01:13:54) The Person Who Shaped Hugh's Investing Career (01:15:24) The Three Things He Wants Investors To Remember (01:16:28) Disclaimer
Connect with Hugh Yarrow: LinkedIn - https://www.linkedin.com/in/hugh-yarrow-13189482/
Learn more about the Evenlode Income Fund: Website - https://evenlodeinvestment.com/our-strategies/ifsl-evenlode-income-fund/
Recorded on: 08/06/2026
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