Blue Whale's Yiu on finding the 'holy grail' of inflation-busting companies

Microsoft a 'favourite example'

Companies with the “double whammy” of high gross margins and superior pricing power are best set to weather current inflationary pressures, according to Blue Whale’s Stephen Yiu, who explained they are both less affected by rising costs and can increase their prices to outpace inflation.

CIO Yiu, who runs the £1.1bn LF Blue Whale Growth fund, said 2021's inflationary backdrop, which was caused by a reopening of economies after lockdown, has been exacerbated by "drastically limited supply" across the piste. As such, he believes it is important to look for a "particular combination of attributes" when selecting stocks. One key trait he is looking for is pricing power, given these firms can raise their prices in-line with inflation without losing customers. The Big Interview: Blue Whale's Stephen Yiu brings fresh eyes to UK stockmarket "Our favourite example is Micros...