The content and distribution game is a hotbed of competition, with leading lights like Netflix, Disney and of course YouTube within the Alphabet (Google) stable. There are many others trying to get a piece of the action, like Amazon and Apple. And of course, there are the legacy names in entertainment that are desperately trying to cling to market share.
While the streaming players are investing billions in content and distribution, the legacy names are busy with M&A and consolidation strategies. The competitive dynamics in this space are changing constantly, which means that consumers are winning and investors need to be careful. Having covered Netflix this week in Magic Markets Premium, we decided to take a broader look at this exciting sector.
This podcast is for informational purposes only and is not financial or investment advice. Please speak to your personal financial advisor.
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Magic Markets #247: Investing in Property with Mesh.Trade and 27four
Property is a vibrant asset class in South Africa. From convenience retail centres through to mixed-use developments, property is a popular way to earn yield and achieve real returns in excess of inflation.
27four Investment Managers has partnered with Mesh.Trade to bring private property investment opportunities to a retail investor audience. There are at least two opportunities that will be made available, with the first being mixed-use commercial development Van Rijn Meent in the heart of Stellenbosch.
On this podcast, Mesh.Trade's Connie Bloem and 27four's Mornay Visser joined us on Magic Markets to unpack the opportunity and why they believe that this is a compelling alternative asset for investors to consider. You can learn more by visiting the website at this link.
This podcast is for informational purposes only and is not financial or investment advice. Please speak to your personal financial advisor. Mesh Trade SA (Pty) Ltd is a licensed Financial Services Provider (53710) and an Accountable Institution registered with the Financial Intelligence Centre. 27four Investment Managers (Pty) Ltd is an authorised financial services provider with license number 31045.
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Magic Markets #246: To Hedge or Live on the Edge?
There's a lot of nervousness out there at the moment around global asset prices, leading to discussions around whether the top is in. Naturally, this drives investors and traders to think about hedging strategies to mitigate the impact of a correction - or worse, a crash.
In this episode, we discussed why hedging is used as a strategy instead of just selling down positions. We looked at different kind of hedges, ranging from index futures through to ETFs like SQQQ and VIXY.
As always, this podcast is a way to share our ideas with listeners and drive debate. It is for informational purposes only and should not be treated as financial advice. Â
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Magic Markets #245: How Big Deals Create Big Problems
The quality (and track record) of corporate M&A ranges from incredibly smart deals through to corporate disasters. One thing is for sure: results may vary when you see companies announcing large transactions.
After dedicating Magic Markets Premium this week to the proposed Keurig Dr Pepper - JDE Peet's transaction, which has all the makings of a mess, we decided to use our free show to discuss more fundamental principles around M&A and why large deals are often a flop. It almost always comes down to the same problem: misalignment between management and shareholders.
We also brought some balance to the discussion by looking at great examples of successful M&A strategies both in South Africa and abroad.Â
As always, this podcast is a way to share our ideas with listeners and drive debate. It is for informational purposes only and should not be treated as financial advice. Â
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Magic Markets #244: Buying Shovels in the X-Rush
The concept of "shovels in the gold rush" is really useful in investing, as it speaks directly to thematic opportunities where the approach is to pick a stock as far up the value chain as possible.
A perfect example is Coinbase, which is really a play on the broader crypto market. A less pure-play example is Accenture, which is an attempt to get a slice of the action in AI and cloud investment by corporates. And if you stretch the definition even further, you can come up with plenty of other examples.
Is this a good strategy? And why? Perhaps most importantly, does it always work?
Using examples from our own portfolios, we took the opportunity to discuss the concept of shovels in the X-rush and why investors should add it to their thinking.
As always, this podcast is a way to share our ideas with listeners and drive debate. It is for informational purposes only and should not be treated as financial advice. Â
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The Finance Ghost and Moe-Knows discuss key market trends across stocks, currencies, fixed income, commodities, macroeconomics and geopolitical trends, helping you understand what's going on out there.
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