The Resilience Premium in Emerging Markets: How Adversity-Built Founders Create Long-Term Value

In an era of geopolitical tensions, inflationary pressures, and supply chain disruptions, investors are increasingly turning their attention to a unique subset of companies: those built by founders who thrived in adversity. These enterprises, often rooted in emerging markets, exhibit a “resilience premium”—a term describing their ability to outperform peers through innovation, disciplined execution, and a culture of long-term thinking. From Indonesia's Alfamart to Brazil's WEG, the stories of these companies offer a blueprint for navigating today's volatile markets.

The Power of Adversity-Built Leadership

Consider Chung Ju-Yung, the visionary behind Hyundai. In the 1960s, South Korea was a war-torn nation with limited resources. Chung's mantra—“If you don't try, you won't succeed”—drove Hyundai to become a global leader in construction, shipbuilding, and automotive manufacturing. His philosophy emphasized humility, ethical governance, and relentless execution. This mindset isn't just historical; it's a template for modern founders in emerging markets who face similar challenges.

Take Alfamart in Indonesia, for example. With over 20,000 convenience stores, the company is expanding into remote islands where infrastructure is underdeveloped. Unlike firms reliant on global trade, Alfamart's growth hinges on local execution. Its ability to adapt to fragmented markets mirrors Hyundai's early strategies, proving that domestic-focused models can thrive even when global conditions falter.

The Resilience Premium in Action

The resilience premium isn't just a concept—it's a measurable advantage. Founders like William Li of NIO and R.J. Scaringe of Rivian built their companies during the 2008 financial crisis, a period of extreme uncertainty. NIO, a Chinese EV pioneer, has surged 150% in 2025 despite geopolitical tensions, thanks to its battery innovation and loyal user communities. Rivian, meanwhile, has rebounded 120% year-to-date after a 14% drop in deliveries, showcasing how investor confidence in founder-led vision can outweigh short-term hiccups.

These companies share a common trait: they prioritize Growth, R&D, Innovation, and Trust (GRIT). For instance, BDO Unibank in the Philippines is targeting 50 million unbanked customers through digital and physical expansion. Its low debt, strong governance, and focus on financial inclusion align with the GRIT framework, making it a compelling play in a market where only 56% of the population is banked.

Why This Matters for Investors

The resilience premium is particularly valuable in today's climate. Emerging market companies are often less exposed to global tariff fluctuations and more attuned to local demand. Stewart Investors, a firm with a long track record in emerging markets, has shifted its portfolio toward such firms in Indonesia, the Philippines, and India. This strategy reflects a growing consensus: companies built to withstand adversity are better positioned to capitalize on volatility.

Consider WEG, Brazil's electrical equipment giant. For decades, it navigated hyperinflation, political instability, and currency devaluations. Its ability to adapt to Brazil's chaotic environment has made it a leader in a world increasingly defined by inflation and geopolitical risk.

The Path Forward

For investors, the lesson is clear: seek out founder-led companies with a history of overcoming adversity. These firms often exhibit traits like:
- Disciplined capital allocation (e.g., BDO Unibank's low debt levels).
- Innovation in core markets (e.g., NIO's battery-swapping technology).
- Strong stakeholder trust (e.g., Hyundai's ethical governance model).

While emerging markets carry risks, the resilience premium offers a buffer. Founders like Chung Ju-Yung didn't just survive—they redefined what was possible. Today's investors would do well to follow their lead, betting on companies that turn adversity into opportunity.

In the end, the resilience premium isn't just about surviving storms; it's about building ships that sail through them. As global uncertainty persists, these are the companies—and the founders behind them—that will deliver the most compelling returns.