Emerging markets, inflation and currency risk
A post at Interactive Investor Blog on the nominal good performance of Zimbabwe’s stock exchange, is a useful reminder of the importance of real returns. This works both ways, and is why equity investors should not worry too much about currency risk. (more…)
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Can Woolworths recover?
I have never liked Woolworths, with its weak brand, unfocused retail format, and uncertain wholesale business. Now, at a time when things could not look worse, I am changing my mind. (more…)
The future of newspapers
Judging by this interview, it appears that at least one major investor in newspapers in the US is over-optimistic about the impact of the internet. It reflects the same problem as the trends we have seen in British newspaper circulation. (more…)
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Free market hypocrisy: Part 2
My previous post on hypocrisy about free markets may given the impression that I am opposed to free markets. My problem is not with free markets per se, but with inconsistency and hypocrisy in advocating them, and with regarding free markets as a panacea. (more…)
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The end of sell-side?
Merril Lynch’s widely reported reduction in access to its sell-side research is something that I would interpret as a sign of trouble. I expect things to get worse for sell-side research, and I wonder what could replace it. (more…)
The unpredictability of house prices
House prices are very sensitive to comparatively small changes in supply and demand. This, together with undertainties in the long term forecasts, makes long term prospects very uncertain. (more…)
Why your IT department is incompetent
Complaints about IT are common. It is not difficult to find examples of gross incompetence. So why does it happen? (more…)
Directors’ pay vs management theory
The justifications for spectacularly high pay for the upper ranks of management, particularly when in the form of options, are that high pay is needed to attract talent, and that performance related pay is needed to align directors interests with those of shareholders. There are flaws in this argument. (more…)
Corruption: a simple test
Given the reluctance of governments to investigate bribes paid to foreign governments, I want to suggest some simple tests for those who want to know if a particular company pays bribes. (more…)
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Open source: what investors need to know
I have blogged about open source before, but not specifically from an investors point of view. Because this is not a subject that most investors are familiar with, I am going to make this a basic introduction. (more…)
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