Decouple podcast: Nuclear the ultimate ESG investment.
Nuclear energy sits in an ESG limbo despite checking many of the boxes. Arthur Hyde, partner at Segra Capital Management, discusses amongst other things the relevance of nuclear achieving ESG status, whether this would change the cost of capital and make new builds in the west more economical and how the uranium sector might be impacted by ESG eligibility.
Jonathan Ruffer: Investment review (April 2021).
“Over the past decade we have seen yields drop almost to nothing in conventional high-quality bonds, while risk assets have risen markedly – it has been better to hold the capital, even where trustees have striven to provide commensurate benefits to the income class. [This] is about to change – with higher inflation, rising yields will provide some compensation to the income beneficiary, and the mischief will be suffered by the capital holder. Generation-on-generation, this may all come out in the wash; decade on decade, it will not.”
Fast Company: Nintendo’s global and US presidents on the company’s forays into theme parks, movies, and beyond—and the importance of not getting distracted.
An interesting glimpse into the culture at Nintendo and how management thinks about the allocation of its human resources (i.e. on game development vs. IP expansion initiatives). One of the better essays on Nintendo in my opinion is by Matthew Ball, who explains why the “Nintendo is Disney” is flawed given their fundamentally different management styles and approaches to content. From an investor’s perspective, perhaps some equally important opportunities for the company are in growing the proportion of digital sales, increasing the penetration of Nintendo Switch Online (as % of installed base) and expanding distribution in other markets (e.g. China, Brazil).
Arisaig Partners: Quarterly report (April 2021).
They discuss their new position in IndiaMart, which is India’s leading B2B online marketplace. Broadly comparable to Alibaba’s 1688.com but at an earlier stage of development (i.e. technology capabilities are still far behind, as well as the incremental services offered to merchants on the platform). The company has a large addressable market and the optionality to expand into adjacent areas. The biggest threat is from horizontal e-commerce players (e.g. Amazon) who may look to expand into B2B e-commerce, although there are also closer local competitors (e.g. Softbank-backed Meesho). They also share how they think through the impact assessment of IndiaMart, whose core activities empower MSMEs, which are a crucial source of jobs and financial stability in many emerging markets.
Seven questions with Arundhati Roy: “Capitalism has become a weapon of mass destruction.”
The prize-winning writer shares her thoughts on India, nationalism, literature and politics. Also see her recent piece in the Guardian on India’s Covid-19 catastrophe.
Could this time truly be different?: NFTs, macro, crypto, bitcoin with Raoul Pal.
Worth a listen/watch: