Antenna: Capitalism 2.0

In this series of reports, Brewin Dolphin focuses on the major global trends that are shaping the world around us.

Much of how you define capitalism is about how you define self-interest. Capitalism 1.0 (our current system) assumes self-interest means maximising short-term profits, but this can lead to exploitation, pollution, tax avoidance and inequality. Capitalism 2.0 means seeing these issues as part of our self-interest and addressing them. It is driven by individuals, in their roles as consumers, workers, savers and voters.

From an investment perspective, the challenge is to identify the companies that are alert and responsive to the changes taking place in popular attitudes, because those are the businesses that have a better chance of succeeding in the long term.