I hope everyone is having a great week. Listened to a shareholder meeting today and my feeling about today's business environment, especially for consumer based companies, is without a comprehensive digital strategy which can be implemented in a variety of channels, an enterprise is destined to struggle for growth. Not to state the obvious, but anyone who believes smartphones, and tablets and companies like Twitter, Facebook, LinkedIn, Google, YouTube, etc are not going to influence consumer behavior in a more profound way as time goes on are kidding themselves. The number of people who are connected, and a business can have access to, or communicate with, through the internet and digital methods is just so overwhelming and the velocity of communication is so quick, billions if dollars and market share in so many markets depends on how well a company can integrate their digital strategies into day to day operations and execute their plans. Yes, Twitter may not be a 10 billion dollar revenue company, but the affect it has on people and perceptions make it incredibly powerfu. Facebook is value at 50-65 billion dollars, which from an operational standpoint is excessive, but considering there are 500 million people using the platform, well, there is a ton of value there, maybe not 50 billion worth, but you can be sure it is a whole lot- here is Bill Miller from Legg Mason talking about Facebook on CNBC:
Investing in the Next Big Thing
In what seems like the 100th time in a row, Bank of America lets investors down. Just my opinion, but they might have set a record for the worst decade for a company ever. Here you go: http://finance.yahoo.com/news/In-blow-for-BofA-Fed-rejects-apf-2538718906.html?x=0&sec=topStories&pos=7&asset=&ccode=
An uplifting story about real heroes, the boys in Japan trying to prevent a real nuclear disaster: http://www.bloomberg.com/news/2011-03-24/nuclear-warriors-recuperate-on-japanese-vessel-in-fight-to-avert-meltdown.html
The hits just keep on coming with Las Vegas housing prices- check back in a few years as things don't like they will change much (let me know if you think I am wrong!): http://www.lvrj.com/business/las-vegas-home-prices-down-5-2-percent-from-last-year-118443994.html
Please share your opinion on any companies you think have a great digitial strategy, and execution. Be well.
As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.
Yale Bock, CFA
President, Y H & C Investments
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