The Impact of Intangibles on Base Rates

giugno 23, 2021

The Impact of Intangibles on Base Rates

Consilient Observer

The Impact of Intangibles on Base Rates

giugno 23, 2021

The shift in investments from tangible to intangible assets has important implications for how investors should think about corporate growth rates.
Intangible assets have greater potential economies of scale and higher risk of obsolescence than tangible assets. This means companies with more intangible assets can grow faster, but they can also become irrelevant and shrink faster.
Our analysis of historical sales growth rates for U.S. companies reveals both of these results: higher growth and more dispersion, on average, for companies and industries with the highest intangible asset intensity.
There are two main lessons for investors: First, it is important to be mindful of the potential shift in the base rate due to the rise of intangibles. Second, skillful investors may be able to identify the companies that will grow faster than expected, hence providing the potential for attractive returns.

SCARICA IL PDF

Counterpoint Global’s culture fosters collaboration, creativity, continued development, and differentiated thinking.

Subscribe to Counterpoint Global Insights - Consilient Observer

Email Address*

Please enter a valid email address

Please enter the code sent to your email address.

Valid for 10 minutes only

Invalid Otp

Confirm

Resend Code

Email Not Sent

First Name* Please enter your first name

Last Name* Please enter your last name

Paese* Please enter your country

Submit

Approfondimenti correlati

IMPORTANT INFORMATION

The views and opinions are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively the Firm"), and may not be reflected in all the strategies and products that the Firm offers.

This material is for the benefit of persons whom the Firm reasonably believes it is permitted to communicate to and should not be forwarded to any other person without the consent of the Firm. It is not addressed to any other person and may not be used by them for any purpose whatsoever. It expresses no views as to the suitability of the investments described herein to the individual circumstances of any recipient or otherwise. It is the responsibility of every person reading this material to fully observe the laws of any relevant country, including obtaining any governmental or other consent which may be required or observing any other formality which needs to be observed in that country.

This material is a general communication, which is not impartial, is for informational and educational purposes only, not a recommendation to purchase or sell specific securities, or to adopt any particular investment strategy. Information does not address financial objectives, situation or specific needs of individual investors.

Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results. All investments involve risks, including the possible loss of principal.

Prior to making any investment decision, investors should carefully review the strategy's relevant offering document. For the complete content and important disclosures, refer to the Article's PDF.

The Impact of Intangibles on Base Rates