Podcast Summary
Discovering Insights from Economic and Money Podcasts: Explore 'The Big Take DC' and 'Smart Money Happy Hour' podcasts for valuable discussions on money, politics, and power's impact on government and voters. Duncan from Schroders' accessible statistical presentations and insights on UK and Japan markets are noteworthy.
There are numerous informative and engaging podcasts available on various platforms, each offering unique insights into economics, money, politics, and more. Sarah Holder and Solea Mohsen host "The Big Take DC," where they discuss how money, politics, and power shape government and the consequences for voters. Maren Somersetworth and John Stefcic, on the other hand, co-host "Smart Money Happy Hour," where they discuss unfiltered money matters, pop culture, and more. John Stefcic, a senior order at Bloomberg and author of the Daily Money Stuff newsletter, appreciates Duncan from Schroders for his accessible and confirming statistical presentations, particularly his valuation charts indicating that the UK and Japan are cheap markets. Duncan's work on equal weighted and market cap weighted indices also highlights the difference in results when looking at these indices, and his writing is accessible without a paywall or client acceptance. Overall, these podcasts provide valuable insights and perspectives on various topics, making them worth checking out for those interested in economics, money, and politics.
One-third of UK listed companies have delisted since 2011, limiting retail investor access: The delisting trend, driven by private equity buyers, limits retail investor access to corporate growth and hinders shareholder democracy by making it difficult for individual investors to access growth opportunities and maintain transparency and accountability in publicly listed companies
The delisting of companies from public stock markets, driven largely by private equity buyers, is limiting access for retail investors to corporate growth and hindering shareholder democracy. According to the discussion, approximately one-third of companies listed on the UK stock market in 2011 have since delisted, with the majority being bought by overseas buyers, primarily from the US and Canada. This trend has resulted in UK investors losing access to these companies if they invest in the UK stock market. Moreover, private equity firms often hold the biggest and smallest growth companies, making it difficult for individual investors to access these opportunities without using a middleman or investing in a private equity fund. This barrier to access not only affects investors' ability to capitalize on corporate growth but also undermines the transparency and accountability that comes with publicly listed companies, where shareholders have the ability to vote on important decisions. The rise in interest rates may make the private equity model less appealing, but it's crucial to ensure that companies continue to list to maintain investor access and preserve shareholder democracy.
Impact of Rising Interest Rates on Private Equity: Though large buyouts are negatively affected by rising interest rates, smaller segments like early-stage VC and SMB buyouts remain resilient. Long-term, the industry adapts to lower interest rates, but strong fundamentals are key to success.
The private equity industry is undergoing significant changes due to rising interest rates, but not all parts of the industry are equally impacted. While large buyouts are being hit hardest due to their heavy reliance on borrowing, smaller segments such as early-stage venture capital and small and mid-sized buyouts are less affected. Over the long run, the industry has adapted to the expectation of falling interest rates and easy refinancing, but companies with strong fundamentals can still thrive regardless of interest rate trends. As James Anderson, a guest on this podcast, often argues, focusing too much on interest rates and valuations may not be productive for investors. Instead, it's crucial to focus on the underlying value and potential of the companies themselves.
Investing in good, growing companies can lead to significant returns: Investing in strong, cash-generative companies can lead to significant returns, even during economic uncertainty. Transparency around unlisted investments is an important development, allowing investors to make informed decisions based on accurate valuations.
Investing in a good, growing company can lead to significant returns, regardless of economic conditions or market fluctuations. The success of Scottish Mortgage Investment Trust, which held expensive, unlisted investments, is a testament to this. However, as interest rates rise and investors become more cautious, there is increasing pressure on companies to provide greater transparency and detail about their unlisted investments. This can help build confidence in the valuations used by listed investment trusts, such as buying back their own shares at a discount. Ultimately, having a strong, cash-generative portfolio is key to long-term investment success. The recent trend towards increased transparency is an important development, as it allows investors to better understand the value of these unlisted investments and make more informed decisions.
Private equity trusts buying back shares to demonstrate confidence: Some PE trusts believe their holdings are undervalued and buying back shares can be a good investment opportunity, but it comes with risks like shrinking fund size, selling holdings, and taking on debt.
Some investment trusts in the private equity sector are implementing buyback programs to demonstrate confidence in their own valuations to shareholders. These trusts believe their holdings are undervalued and buying back shares at these prices can be a good investment opportunity. However, not all trusts agree with this approach, as it comes with risks such as shrinking the fund size, selling beloved holdings, and taking on debt. Trusts that show confidence in their valuations and implement buyback programs may be worth considering for investors in the listed private equity arena.
Gold vs. Bitcoin: Which is a better long-term investment?: Experts Duncan and Doug believe gold is a better long-term investment than Bitcoin, despite potential opportunities in emerging markets, Japan, and the UK. They plan to create a Bitcoin-to-gold ratio index as a sentiment indicator.
Key takeaway from the podcast episode of Meryn Talks Money is that both Duncan and Doug, experts in the financial industry, believe that gold is a better long-term investment than Bitcoin, even if they agree that emerging markets, Japan, and the UK present interesting opportunities. When asked to make a hypothetical investment for a 10-year period, they both chose gold over Bitcoin or a UK deposit account. The hosts also mentioned their plan to create a Bitcoin-to-gold ratio index, which could potentially serve as a sentiment indicator for the future. The episode covered various economic topics and was produced by The Big Take from Bloomberg News. Solea Mohsen, the host, emphasized the importance of understanding how money, politics, and power shape government and the impact on voters. The podcast is available on various platforms including Apple Podcasts and the Iheartradio app.
