Forward-looking investors understand that just buying the index blindly is not enough. Instead, finding companies with compounding, sustainable growth is key, especially in today’s challenging investment environment, says Bo Knudsen, CEO of C Worldwide Asset Management in Denmark. Knudsen, who’s also managing director of global equities, practises high-conviction investing and limits his portfolio to 30 stocks. “You shouldn’t dilute your exposure to a certain factor by adding mediocre companies,” he said. “Why not go for the ones that can best exploit the factors you find most interesting?” Knudsen looks for firms that can compound their growth over the long-term and that are well-positioned to weather climate change. He particularly likes companies that facilitate society’s digital transformation.