A couple weeks ago, in our quarterly strategy report (see: QSR-Has Innovation Bottomed?), I argued that it appeared that innovation had bottomed. I showed the following chart, which is maintaining its September 21, 2022 low, highlighting the quintile spread of the S&P 500 on the...
It appears to us that global innovation has bottomed and offers attractive value. An extended analysis follows in our Quarterly Strategy Report: Has Innovation Bottomed? Prefer to download this presentation in PDF? Please click here. 1. Summary -Innovation as a factor appears have bottomed earlier in 2022. Looking at...
Innovation was the market darling thematic for many years leading up to COVID. The pandemic turbo-charged returns for innovation as the stay-at-home beneficiaries did phenomenally well. However, since the first quarter of 2021 innovation has struggled as a thematic strategy. It appears to us that...
By reversing an accounting error, we identify Knowledge Leaders across the world. Steve and Bryce give a brief tour of what innovation leadership looks like and where we find investment opportunities in every region and all 11 economic sectors. [video_popup url="https://www.knowledgeleaderscapital.com/Downloads/KnowledgeLeadersVideo48004.mov" img="https://www.knowledgeleaderscapital.com/wp-content/uploads/2021/02/VideoScreenShot4.png"] A New Lens for Looking...
Steve and Bryce describe our process for correcting the obstruction created by current accounting standards. We track down innovation investments in company financial statements, reverse the error, and create a new intangible-adjusted financial history that we use to screen for the Knowledge Leaders that form...
The nature of corporate investing has changed, with a greater than ever focus on intellectual property. In this video, Steve and Bryce describe how an outdated accounting rule renders these investments practically invisible, making it difficult to tell the difference between the Knowledge Leaders who use...
The digital revolution has changed the economics of every industry in every region of the world, creating a growth engine for the last half century and inadvertently, a market anomaly by which highly innovative companies tend to deliver excess returns in the stock market. This...
Italy’s Pirelli is the only tire producer that sells exclusively to consumers. Today with more than 3,000 different models in stores, one area of breakthrough innovation is what Pirelli calls connected tires. The firm’s “cyber” technology strategy involves building sensors into the tire to collect...
Last week, Steve Vannelli was a guest on Killer Innovations Radio, a show about ideas, creativity and innovation -- where leading innovators discuss how to go from ideas to breakthroughs. He discussed a few companies that make the cut as Knowledge Leaders, some on their way out...
The most innovative companies in the world tend to exhibit two highly desirable characteristics: high return on invested capital (ROIC) and low long-term debt as a percentage of total capital. There are fundamental reasons for these characteristics. First, innovative companies are very profitable because they...
There is a new innovation boom playing out in the United States that has many positive implications for US equities. In July 2013, the BEA began including investment in intellectual property in National Income and Product Accounts. As part of this benchmark revision, the BEA...
