Incremental Insights #7
The Roar is Getting a Little Louder
UBS with a piece on why they expect 5-6% nominal GDP growth for the next few years. Driven mostly by a CAPEX boom from years of underinvestment and the productivity potential of AI.
Why Capital Allocation Matters for Companies and Investors
Most companies do not deploy capital effectively. Those that do tend to be the long-term winners.
Good capital allocators:
- show strong returns on acquisitions and share repurchases.
- M&A improves a company’s financial profile.
- FCF has been stable or has increased over time
- A history of returning capital through dividends and share buybacks
Apple Intelligence is Right On Time
Personalized AI needs a platform for distribution to a wide audience. The phone, the truly personal computer, is that distribution platform. It’s why Apple is well-positioned for the growth in personalized AI.
Artificial Intelligence Potential
Is AI a disruptive technology favoring new disruptive companies or a sustaining technology that favors the incumbents?
