Innovation Ethos

“Vulnerability is the birthplace of innovation, creativity and change.” - Brene Brown

Good mornin’

It’s hard to believe that we are into the final sets of the summer season, with only a few more weeks to enjoy the long summer beach days!

It’s been a busy few weeks around the globe, between the summer Olympics and the exciting market moves globally, there’s been no lack of entertainment to encourage us to keep our toes in the water this summer.? I thought it fitting to share a little story with you as we keep trying to raise the bar.....

Raising the Bar

Most of us are familiar with the high jump,?a track and field event in which a participant runs toward a raised bar and attempts to leap over it without touching the bar….

Throughout history, high jumpers had used a few traditional techniques—like the scissors or the straddle—to clear the bar by leaping forwards or sideways over it.? But this would all change when an Oregon State University high jumper named Dick Fosbury came onto the scene.

Fosbury’s progress had stagnated using the traditional jumping techniques, so he started experimenting with new ways of clearing the bar. In particular, he challenged the conventional methods of a forward or sideways approach, instead developing an angled approach that culminated in him arching his back as he went over the bar backward.? Fosbury was widely ridiculed for the technique—some remarked that it looked like an "airborne seizure" or a "fish flopping in a boat" when they first watched it.? But at the 1968 Olympics, Dick Fosbury used the technique to win gold and set a new Olympic record.

Within a few years, the Fosbury Flop (as it became known) was the standard in the sport, and it remains so today, over 50 years later.

What can we all glean from the experience: True innovation is often met with ridicule. Enduring that non-belief is the price of admission for anyone who wants to alter the status quo.

As writer Sahil Bloom rightly notes, “Innovation is about everyone agreeing with you...later.”

“The vast majority of human beings dislike and even actually dread all notions with which they are not familiar... Hence it comes about that at their first appearance innovators have generally been persecuted, and always derided as fools and madmen.” - Aldous Huxley

David Bowie once said that “if you feel safe in the area you’re working in, you’re not working in the right area. Always go a little further into the water than you feel you’re capable of being in. Go a little bit out of your depth. And when you don’t feel that your feet are quite touching the bottom, you’re just about in the right place to do something exciting”.?

As investors, we pay close attention to the rapid pace of technology advancements, and despite challenging overall market conditions, continuing investments in frontier technologies agnostic of the sector is the promise substantial future growth.? For those interested in a look at some of the trends on the forefront – the McKinsey Technology Trends Outlook 2024 is worth a read.??

For all of us, planning for the long-term future and the rapidly changing world around us…..I know it might seem intimidating, but turning to face the strange is exactly what we all must do. Like investing, our growth and advancement takes discipline and intention, and for us to keep raising the bar, its imperative that we recognize our vulnerability and stay innovative, stay creative and embrace change.?

"Tomorrow belongs to those who can hear it coming." - David Bowie

Developing an Innovator’s Ethos

As we look to both understand and embrace innovation, I must emphasize the importance of mindset in shaping our attitudes and beliefs toward change. It’s?our mindset that can allow us to be open to new ideas, new approaches, and ultimately new ways of living. Adopting an ethos focused on continuous learning, curiosity, and creativity can lead to greater success in both work and life. This type of mantra enables us to discover and uncover new opportunities and create meaningful change.

To cultivate an innovator's ethos, there are several key strategies we can incorporate into our daily lives, and I thought it worth highlighting a few for us to consider….

Embracing curiosity when problem-solving allows us to question existing norms and think outside the box. By approaching daily tasks with a sense of wonder, we are more likely to find innovative solutions and drive process improvements. This curiosity-driven approach can spark creativity and lead to new ideas or new exciting opportunities for us to potentially transform the way we approach our days.?

Additionally, embracing a Culture of continuous learning is essential for staying relevant in today's ever-changing world. ?As we can see in the McKinsey report, technologies like artificial intelligence are constantly evolving, just one example of a small slice of the innovation that has an imprint on our daily lives.? Dedicating time to enhancing our knowledge of new technologies ensures that we can adapt and thrive in a rapidly dynamic world of change.

Open collaboration is another crucial element in cultivating an innovator's ethos. By encouraging the free exchange of ideas and embracing diverse perspectives, we create a collaborative environment around us that is conducive to innovation. Leveraging the expertise of others can lead to breakthrough solutions and drive our personal and professional growth.

I always say that you are an investor of your energy, an innovator with your time, and an inventor of your future.? Ultimately, developing an innovator's ethos requires an ongoing commitment to personal growth and a willingness to embrace new challenges. By adopting behaviors that prioritize curiosity, creativity, and collaboration, we can position ourselves as forward-thinking and dynamic individuals ready to tackle whatever lies ahead.

“Do not get obsolete like an old technology, keep innovating yourself.” - Sukant Ratnakar

It’s an exciting time to be a global investor, and active allocation is key to ensuring that we are positioned for continued growth across asset classes.? Diving deep into specific sectors of the economy, and in our research of the companies that we own, the importance of innovation in all sectors is critical, and we see an innovation landscape that is abundant with opportunity.?

“Change is the law of life, and those who look only to the past and present are certain to miss the future” - John F. Kennedy

In the spirit of keeping the summer alive, I thought I’d share with you a few music recommendations as we cling to our Endless Summer.?

Out of the Water by Salt Tree – The Henderson family 2024 summer theme tune

Endless Summer – Beachside Endless Summer ?

Sonido Cósmico – Sipping Summer Coffee

Brushfire Fairytales – Roadtrippin & relaxin’

My summer read at the beach this year is The Splendid and the Vile: A Saga of Churchill, Family, and Defiance During the Blitz and it was Churchill who once proclaimed, “To improve is to change; to be perfect is to change often.”

Of course, perfection is something elusive for us to strive for but his statement does ring true as we continuously work to discover, define, and refine our own unique goals, aspirations, and vision.? As Socrates poetically put it “The secret of change is to focus all of your energy not on fighting the old, but on building the new.”

Enjoy the rest of your summer, and stay curious!

Be well and enjoy the moments,

Derek