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