Alex Pollak

November was another difficult month for investors. But it is useful to note that as recently as five years ago investing in high growth companies as a mainstream strategy seemed risky. The idea that a Fortune 500 business would begin moving its IT department (as for example Kellogg’s did) in... Show More

Alex Pollak

Broker calculators have been running red hot over the past week working through the implications of the large cash balances of some of the world’s largest companies, now that Apple (which is now up 10% in the past month) has told everyone that it is going to undertake what looks... Show More

Alex Pollak

In the twelve months to Monday of this week, the S&P500 index is up 15.02%, while Alibaba is up 80%, Google is up 29.3%, Amazon is up 71% and Apple is up 24%. By contrast, Exxon is down 5.6%, Coke is up 7.6% and General Motors is up 11%. To... Show More

Alex Pollak

This is happening - just not in America. A syndicate of Chinese investors has raised US$240m in first round funding for a US$1.1b car factory in Nanjing, China, and is launching a US$45k, 500 kilometre-range electric, autonomous vehicle for mass production in 2019 (in China) and 2020 (in the US... Show More

Alex Pollak

“The last 10 years have been about building a world that is mobile-first. In the next 10 years, we will shift to a world that is artificial intelligence (AI) first.” - Sundar Pichai, Chief Executive Officer, Alphabet (Google) Show More

Alex Pollak

Just a few days ago, Alibaba Group, the Chinese on-line retailer, came within 1% of being the world’s most valuable retailer – with a market capitalisation of U$473b, its value was just US$4b lower than that of Amazon. Alibaba has been on a tear this year – it is up... Show More

Alex Pollak

The Name of the Rose is Umberto Eco’s masterpiece whodunit set in a 14th century monastery (bags of sex and grisly violence with some serious semiotics thrown in). The last line of the book, which is a reference to the title, has been translated from the Italian as "Yesterday's rose... Show More

Alex Pollak

Amazon on Friday announced the US $14b acquisition of Wholefoods in the US, which has correctly been understood by the Australian market as a reason for the share prices of Coles and Woolworths to fall – just like competitors Walmart and Walgreen did in the US. Show More

Alex Pollak

Fund managers are closing shop (Altair), calling the top (Kelly) and selling out (Hunter Hall). In the five months since January 1, the Australian market has picked up just 2%, compared with over 8% for a US market still hyped up on the Trump trade. Most of the damage has... Show More

Alex Pollak

What next for Snapchat? After a disastrous earnings call, the stock fell 25% and came within 25c of breaching its issue price of US$17. Those that didn’t take the opportunity, brief though it was, to sell at US$24 might be feeling nervous. It is hovering around US$20 now, following the... Show More

Alex Pollak

Amazon in the past 24 hours has confirmed it will launch a full-scale retail offering in Australia – it is now calling for local retailers to join its global marketplace as part of the launch, having already briefed CB Richard Ellis for warehouse space earlier this year. Show More

Whether etf or active, the better option is to choose the product which provides the higher risk adjusted performance, net of fees.

On The trouble with index investing -

David. Thanks, but that is not the issue. The question is at what weight? The index isn't forward looking, and this is the problem - there is no set-and-forget for value capture, as my colleague Anshu Sharma explained here on Livewire: https://www.livewiremarkets.com/wires/amazon-google-report-tomorrow-here-s-why-they-keep-getting-bigger

On The trouble with index investing -

David: Maybe. But Google revenue was up over 20% in the most recent quarter. How should we price this? And what other companies are growing like this? If I could find them, we would buy them...

On Why value investing isn’t what it used to be -

Actually, Graeme, its a great question. The Reserve Bank will continue to be the lender of last resort, i am sure, but this is question of how profitable the banks should be, not how secure - which is why the political climate is important. As well, regulators having been stepping away from heavy handed controls in recent years, for example of Visa and Mastercard, on the basis that they were not systemically all that important in terms of total overall banking system. I would expect a similar reaction to any new payment providers too.

On Crunch time for Australian bank investors -

William - Tesla sees what a comparable car sells for, and sells accordingly - under the umbrella price, as it were. At scale, given fewer parts, it can always be more competitive than a comparable older technology ICE car Of course, any start-up, which is what Tesla is, has to overcome the high fixed costs involved, and Tesla is no different. But the company's rising share price means its easy to attract new investors (so hardly desperate, given Tencent etc) Ted - quite right Henry, $25b+ in sales is hardly Kool-Aid

On The bull case for Tesla -