Tag Archives: Millennials

Millennials Are Saving!

Investments

At times it seems that the general impression of “millennials” is that they work for start-ups, live with at least four roommates (which might include their parents and siblings), drink overpriced coffee from beans sourced from a single bush, value experiences over ‘stuff’ and are broke – all the while posting blissful nonsense on Snapchat.

However, this survey points provides some interesting evidence that “millennials” might be considerably more fiscally responsible than older generations:
LINK: Millennials Are Helping America Save More Money

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Will Spotify be the next hot IPO?

Investments,

According to NY Times, Spotify has finally signed agreement with Universal Music Group. It’s world’s biggest record company whose artists include Lady Gaga, U2, Drage. And this has been their biggest obstacle to going public.

Spotify has been valued at more than $8 billion, it has 50 million paying subscribers and 50 million listening for free. Those listening for free have been paying by listening to ads.

We’ll keep an eye on Spotify as recently there are limited number of enticing IPOs.

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Millennials and Retail

Investments,

“Let’s start at the conclusion: Millennials are about to blow the world’s mind in the best possible way. The idea of a shut-in nation spending the prime of their personal and professional lives playing video games in mom’s basement is lunacy. Millennials aren’t space aliens. They are the spiritual grandchildren of Baby Boomers with longer life spans and better toys.”

millennials

LINK: Millennials & Retail Myths

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The Establishment -vs- The Intangible S&P 500

Investments,

Our superintern Krista found this chart and link while I was away in London for the past two days:

intangibles

It shows how the majority of assets for companies in the S&P 500 Index are no longer hard assets such as equipment, inventories and land, but intangible assets such as goodwill and brand recognition: S&P 500 and Intangible Assets

I agree with the author that this dynamic is yet to be fully understood by the political establishment or Wall Street. A rational counterargument might be that this simply means that the current valuations of these companies with such high levels of intangible assets are ridiculous and can not hold. The problem with this argument however, is that these companies continue to make money, and the fundamental underpinning of security valuation is future earnings. The nature of business is changing, and fortune will favour those that accept and identify opportunities caused by this transition.

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Goldman Sachs on Millennials

Uncategorized, ,

The Millennials – people born between 1980 and 2000 – are the largest generation is US history. The media tends to obsess about them and companies will do anything they can to figure out the magic formula to sell them their products. A couple of things are worth pointing out. I can say with a high degree certainty that millennials didn’t decide that it was all of a sudden super fun to live with mom and dad from 2007 onward. This was due to economic circumstance, not choice. In terms of other paradigm shifts (a very millennial concept…), much is also made of the fact that millennials choose experiences over material goods, and that they choose to share rather than own. This may be so, but we should be careful to overestimate these trends. Often times ‘experiencing’ is cheaper than buying. So is sharing. While services such as Uber are lessening the need for a car, the aspiration among millennials of owning a home is still very strong, which has very positive implications for the recovering US housing sector.

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