Lowes Magazine Issue 128

COMMENT

Point of focus

When establishing Amazon, founder Jeff Bezos had a single point of focus. He wanted a company with: ‘A culture and an operating model that puts the customer at the center of everything Amazon does.’ Bill Gates when he founded Microsoft, had a similar focus, to put a computer on every desk and in every home. It’s having overarching drivers like these that make great entrepreneurs and great businesses stand out and achieve success. While Lowes is a far cry from the size of Amazon or Microsoft, over our 50 years we have held to the same principle. We ask: ‘Is this right for our clients?’ We believe only by asking that question in relation to everything we do, will we do right by our clients and continue to be the kind of business we want to be. It was the principle set for Lowes by my father, Ken Lowes, when he established the company. It is why Lowes has always been independent within the market, which means we can use our knowledge and experience to find the very best products and investments to help build and maintain our clients’ wealth. It is also an approach which has seen us win various accolades over the years and I am delighted to be able to tell you that Lowes has once again been named Investment Adviser of the Year in the annual Investment Life & Pensions Moneyfacts Awards. This is one of several awards Lowes has won in recent years and the trophy will sit alongside others in the reception at Fernwood House. In addition, I am very pleased that we have been named in the Financial Times Adviser Top 100 Advisers 2023. In the wider market, a significant winner over the past year is computer chip manufacturer Nvidia – which has seen its share price double – twice! Its meteoric rise is part of the artificial intelligence (AI) boom. Nvidia’s market was traditionally for graphics-heavy video games. Then researchers in the field of Artificial Intelligence found its products could handle powerful new algorithms that were leading to breakthroughs in AI, and the company’s market changed overnight. A huge surge in demand for its products saw Nvidia capitalise on the opportunity and it now produces a range of the most technologically advanced chips which sell for tens of thousands of dollars – and you need quite a few of them to maximise their potential. The applications that the next generation of these chips are going to run will be part of an evolution that will change the world as we know it. But there is still a long way to go. Throughout the year we have been keeping a watchful eye on developments and I have seen AI applications from some big names which are jaw dropping – in their catastrophic failure, spouting fundamentally incorrect information yet with a sense of confident authority! On the other hand, I have also seen AI processes which, if widely repeatable, represent the start of an evolution that will change every aspect of our lives.

The potential for exponential change means the AI race is well and truly on and while Nvidia is reaping huge rewards at present, we expect it won’t be long before its dominant position is challenged. We retain a watching brief on the market; where it is headed, and which companies are likely to win out long term. Whoever they are, there is no doubt in my mind that having a point of focus will be a significant driver in their success. Ian H Lowes, Managing Director

Lowes.co.uk

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