A Message & Invitation from Chris Quilty on “Classic Investment” & the Year Ahead
Baffled by the labels on the Bloomberg chart above? Don’t worry. You are among the 99.9% (*1) of people in the world who don’t operate in the world of high finance. Having spent 20 years as a Wall Street analyst myself, I can break this down for you. Before the advent of computers, companies were typically valued using the Benjamin Graham principle that dictates a company’s valuation should be based on fundamental research and determining its “intrinsic value.” You know, the stuff Wall Street analysts are supposed to do.
Yeah, that was me.
Here's the bottom line for the chart and why it warms my heart. Since computers have come onto the scene, there has been a raging debate within the investment community between active and passive investment. Translated: it’s Benjamin Graham vs. algorithmic trading and passive indices. It’s a serious issue. Computers now control ~40% of all U.S. assets under management, a level that the Fed believes could present a systemic risk to the financial system.
While I don't plan to put to rest the active vs. passive investment strategy debate (it's great fodder for boring dinner parties), I still believe that research, human analysis, and strategic insight are the cornerstones of a healthy market. That's a fundamental belief shared by my team as well.
The Quilty Space mission to “Fuel the Space Economy” is powered by our authentic passion for the business of Space. Our team strives to help investment and industry professionals understand the strategic and financial nuance of the next great industrial revolution as Space sector decision-makers evolve from an exclusively government model to commercial and public-private partnerships. Every year, we take a market pulse and formulate in-depth, quarterly analyses of the topics our readers are interested in the most.
So, what tops your list heading into 2024?
Email us at info@quiltyspace.com to let us know. And if you haven’t signed up for our free, twice-monthly newsletter -- the Quilty SpaceTake -- drop us your email here so we can keep you in the loop.
*1 If you’re like 99.9% of the people in the world, you’re only reading this after you finished reading my missive. If you’re part of the 0.1% of those who immediately had to validate the data source, you’re probably an analyst.
SOURCE: https://www.satellitetoday.com/broadband/2023/11/17/philippines-orders-another-satellite-from-astranis/