“Amazon will have a huge effect on Woolworths and Coles. All of us in the fresh food retail business will have to be very much more focused” Cathy Harris, Chairwoman, Harris Farm Markets
As part of the NAOS investment process, we pay particular attention to the comments made by company CEO’s and business leaders in order to gain a greater understanding of the current investment environment and key trends that may be emerging. Below are quotes from the week which in our view detail some of the most important and prominent industry trends and economic factors impacting their businesses. (VIEW LINK)
“The mining methods of the past have changed. We’re controlling mines from office buildings instead of the mine sites…I was talking to a customer last week about autonomy and they have a goal to be fully autonomous on every mine site by 2025. And they have thousands of pieces of equipment. So, you’ve got these bold goals being placed out there. So, clearly the momentum is moving” Denise Johnson, President, Caterpillar
“The new baseload for us is going to be large scale renewables, firmed up by open-cycle gas and, eventually, when storage comes down, that’s what it will be. Technology is driving this — we don’t see any baseload other than renewables. You’ll hear people say, ‘no coal can compete’… But I’ve looked at the numbers and come to decisions (that) are going to direct billions of dollars of investment. I’ve looked at it pretty hard” Andy Vesey, CEO, AGL Energy
“It is really only in the past 6-12 months that there has been some policy and...bipartisanship over the renewable energy target. As that new capacity comes online and brings more supply to the market it will put downward pressure on prices” Kane Thornton, CEO, Clean Energy Council
“We are taking immediate action to put downward pressure on power prices and ensure reliable and secure energy for all Australians. We will be implementing our gas regulation that affects exports … as one of the factors that affects the high price of energy at the moment is a shortage of gas” Malcolm Turnbull, Prime Minister, Australia
NAOS believe ‘it is impossible to produce a superior return unless you do something different to the majority’, we find quality companies at attractive values and apply a patient, high conviction and often a contrarian investment approach to...