Microsoft versus Apple

Microsoft’s shares went through USD 2 trillion in total value on 22 June, making it only the third company, after Apple and Saudi oil firm Aramco, to do so. Microsoft and Apple are brilliant companies which have created immense amounts of value for their customers and shareholders alike. They are each now worth more than the whole […]
Strategy: Property cascades

Breaking ground for new apartment towers continues apace in Sydney, and has actually accelerated in Melbourne. Does that tell us that the inner-city property development boom goes on unabated – no, definitely not. Melbourne residential property prices fell over 10 percent in the last year and approvals for new apartments are predicted (by the Master […]
Negotiation: Getting to Lose-Lose

The Brexit negotiations between the UK and the EU are such a terrific case study in the principles of negotiation, and so current, that it is worthwhile drawing out some lessons. I wish they were all positive examples of the skilful conduct of negotiation that results in a win-win for both parties. But, sadly, they are mostly […]
Strategy: The Biggest Bet in History

The biggest \’bet\’ in history is a bet between China and the US that began in 1972 and will play out over nearly a century. The US (or more generally the Western alliance) is betting that China cannot build a highly developed economy without becoming a democracy. China (more specifically the governing Communist Party) is […]
Strategy: The AFL\’s version of events

In 2016 an extra week was inserted into the calendar of the Australian Football League (the AFL). No games are played in that week, which sits between the end of the regular season and the beginning of the finals series (the play-offs). Football fans were baffled and annoyed by the change. But it does make […]
Strategy: Open, out-sourced, competition

Data is accumulating in firms at an exponentially faster rate than firms are learning to analyze it. That mismatch, between the growth of data and firms\’ ability to make decisions based on it, is the biggest disjunction in global commerce.
Going defensive: Option strategies

A combination of bank shares plus put options to protect against a fall in the value of those shares looks attractive at the moment. Grossed-up dividend yields are very high and the price of options on banks shares are relatively low. That is a happy combination, especially for SMSF investors.
Robo-advice

Robo-financial advice is an idea that is as old as the web itself. Vanguard had plans for a robo-advice product in 1999. Now there is a new surge of energy in this space with a large group of fintech startups going after the opportunity. Imagine that you were building a robo-advice product, then what would your […]
Eyes on the prize

Sporting tournaments, such as Wimbledon, The Masters and The Melbourne Cup, receive great fanfare, but much more important \’tournaments\’ are playing out continuously in the economy.
History moves on a frame

The Greek debt crisis is in a brief hiatus that can only last for weeks. Then the impasse between the newly elected Government of Greece and a coalition of countries led by Germany will have to be resolved. An important issue here is the rapidly changing way in which the German public perceives the role […]