Month: September 2018

CEORater Technology Founder CEO Index Continues to Outperform

CEORater Technology Founder CEO Index Continues to Outperform

The CEORater Technology Founder CEO Index outperformed its peer group Year-to-Date through September 18th 2018.

The CEORater Technology Founder CEO Index returned 32.3% and 28.5% on a Weighted and Unweighted Stock Price Return basis respectively (click here for detail) during the January 2nd 2018 – September 18th 2018 period.

The S&P 500 Information Technology (TKR: S5INFT) returned 16.0% on a Weighted basis over the same period.

The Powershares S&P 500® Equal Weight Technology ETF (TKR: RYT) returned 16.6% on an Unweighted basis over the same period.

Don’t Believe The Hype

Don’t Believe The Hype

Cryptocurrency firms fell from grace (Chain and Lightyear merged to form Interstellar) as valuations and expectations got too far ahead of themselves for both the various “coin” firms as well as for blockchain – the distributed database technology that enables digital currency transactions. We are long-term bullish on each – particularly blockchain.

The crypto space isn’t the only sector that grew overheated as reality has set in to the autonomous vehicle space. Apparently robot cars won’t be shuttling all of humanity to and fro by 2025. We expect that autonomous vehicle startups will suffer a materially adverse impact to their respective valuations.

The two technology hype scenarios got us thinking about previous technology hype cycles. Thus, we created the TEK2day, CEORater “Technology Hype Curve” to visually represent an all too familiar pattern as it relates to hyping new technologies. Click HERE to download the Technology Hype Curve graphic.

The Road Less Traveled: Opportunity Cost and Shareholder Activism<span class="badge-status" style="background:red">Premium</span> 

The Road Less Traveled: Opportunity Cost and Shareholder ActivismPremium 

Opportunity Cost for Active Managers Is High Institutional investors typically contemplate opportunity cost within the context of portfolio returns, individual stock returns and ROIC. What however is the opportunity cost associated with pursuing a broken business model versus correcting course? The capital markets are filled with smart people and smart machines. It is more difficult than ever…

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Don’t Be Disintermediated<span class="badge-status" style="background:red">Premium</span> 

Don’t Be DisintermediatedPremium 

Disintermediation Defined Disintermediation is when one party inserts itself between an interested party and its customers (see below table of “disintermediators” and “disintermediatees”).  Ironically, parties that suffer disintermediation often invite it upon themselves. Google Disintermediates Yelp and OpenTable For the past several years Yelp restaurant reviews appeared on Google business listings (this appears to have…

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Founder CEOs: Creators vs. Builders<span class="badge-status" style="background:red">Premium</span> 

Founder CEOs: Creators vs. BuildersPremium 

Every founder CEO begins as a “creator”. Not every founder CEO graduates from “creator” to “builder”.  Creators eventually self-implode (Elon Musk, Tesla and Travis Kalanick, Uber) whereas other founders are able to scale over the long-term. For example, Microsoft founder Bill Gates and Amazon’s Jeff Bezos are builders (We provide a list of Builder CEOs…

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