Last month we saw the FED raising rates for the 9th time in the last 3 years, now to 2.25-2.5% per annum. Also, this month, the FED might keep its Quantitative Tightening (QT) program to US$50 billion per month, in order to reduce its inflated balance sheet. Show More
Apple made history on 2 August 2018, becoming the first company ever to reach one trillion US dollars in market value. Five weeks later Amazon followed, crossing the trillion dollar threshold intra-day momentarily. Show More
As volatility has picked up in recent months, many investors who thought they were protected in a down-market have quickly discovered otherwise. Asset consultants have discussed the value of finding genuinely uncorrelated returns, while also acknowledging the difficulty of finding them. Show More
For decades, traditional wisdom held that value investing is the only way to outperform, and with good reason. Until the GFC, value had outperformed growth in all but a few brief periods, and those periods immediately preceded a major bear market. But for nearly a decade now, growth has produced... Show More
The FAANG stocks (Facebook, Amazon, Apple, Netflix and Google/Alphabet) led the market up and participated in the recent correction. Their latest profit reports are an important guide to the sustainability of the tech sector's rise. Here we argue that on a Price Earnings Growth basis, they still look sharp. Show More
Low interest rates, growing earnings confidence, deconstruction of the nanny state, tax cuts, broad based gains in 7 out of 11 industry sectors and low inflation are all contributing, but the commentary has missed the most important contributor to another new high for the Dow. Show More
Risks often come from unexpected places. For global technology companies, the obvious risks might come from obsolescence and changing consumer preferences. We think it’s taxation that presents the biggest risk for the ‘FANGs’ stocks today. Show More
It has been about 10 years since the Global Financial Crisis (GFC) began to unfold. Very few were prepared for the financial damage that ensued. And it has permanently impacted the psyche of many market pundits. Since then, there has been no shortage of bear market predictions and lately there... Show More
Cable media stocks fell sharply after AT&T announced video subscriber losses, following Comcast and leading to $60 billion being wiped off their valuations. Investors love Netflix but competition is coming. Amazon may move into the $560bn prescription drug market. And more exciting technology developments in transport. Show More
This week we saw Apple’s share price suffer a hangover from the launch of the iPhone 8 and iPhone X. Tesla surprised the market with the rumour that it is partnering with AMD for an autonomous driving chip, knocking Nvidia’s shares. Google bought HTC’s Pixel hardware team. And amusing (and... Show More
On the topic of valuation, Professor Aswath Damodaran is one of the greatest communicators of our time. Recently, he sat down with another famous NYU professor, Scott Galloway, to discuss the valuations of some of the world’s leading technology companies. Professor Galloway is known for his engaging TED-style talks where... Show More
With plenty of buzz about the FANG stocks, the next time you think of the word FANG, think about the underlying power of the business models and applying this to other stocks. Show More
Last Friday the US Technology Index fell almost 3%, with selling concentrated in the largest stocks: Facebook, Amazon, Netflix and Google (the so-called 'FANGs') plus Microsoft and Apple were all down 3-5%. The slide resumed on Wednesday and Thursday and investors must question whether this will continue. I think there... Show More
Since 2015, Nine’s television revenues have been declining. In an age of Netflix, Apple TV and YouTube, consumers face a much wider choice of video on demand than they ever have before. And this means free-to-air television audiences in Australia are declining – by around 5% per annum. Is Nine’s... Show More
Could a television show about Hugh Hefner, the Playboy founder, form part of a competitive threat to Australian retailers Coles and Woolworths? Show More
In part one of this three-part series, we explained how buying companies where management has their own wealth on the line can help you beat the market. In this article, part two, we’re going to analyse a current portfolio holding to show how you can trounce the market if you’re... Show More
The purpose of this analysis is to explore the risks and opportunities that come with what we call the ‘Modern Day Disruptors’. More specifically, we will look at the potential winners and losers from the perspective of a global equity investor and aim to answer the most important question: Will... Show More
One of the things about working in markets, is that you spend a lot of your time being wrong. This can be difficult to accept for many people who, by their nature, want to be right or have been told they are right. Markets don't care much for your opinion... Show More
Self-driving cars, electric cars, artificial intelligence, virtual and augmented reality, streaming video on demand… The list of technologies threatening to improve our lives and/or take our jobs is ever-growing. Stories of failed incumbents such as Kodak, MySpace, and Yahoo are popular among investors, but in reality, incumbents are frequently successful... Show More
The booming tech sector is gearing up for a wave of consolidation, as some companies discover they don’t have a business model, others find that they don’t have the cash to compete in a ferociously competitive market has been, by one measure, a huge success. It has a more than... Show More