At Colonial Scrip Partners, we approach investing from a macroeconomic perspective. We fundamentally believe that the environment creates opportunities and from those opportunities creates the strategies.
The current economic environment tells the story in reverse of where we are much likely headed in the long term as well as some of the short-term market conditions. Technology and its relationship with mankind has created a new approach to old problems and some are problematic, and others are solution driven.
Those problems are the insight into the solutions going forward. We now have a money supply that in terms of its velocity, is in a consistent decline and has been for the last 25 years. What this means for the consumer on a local, national and international level all varies by geographical and industry specifics.
So, we are looking for companies who are focused on controlling their supply chain. Those who balance sheets and previous strategies don’t cripple the transition into the coming world. The low velocity of money creates a lower volume of transactions which restricts the hands that touch it. From there we look for companies who are restricting the hands that in production, transport, acquisition, and quality. We look for companies and industries who have an open-ended relationship with their customer base and a defined solution-based approach to those clients.
If it feels like we are in a race to the bottom, it’s most likely because we are. But there are companies and industries that are forming in their infancy a new client engagement and a new industry and those companies we like to be a part of. Those companies who can control their supply chain can be a disrupter and can compete on a price level ultimately for the benefit of the customer.
After all the customers are the end goal. And providing a lower cost and better interaction with the customer will be the winners of the new world. We position ourselves and our clients to identify those companies and partner with them on their way to success. Consumer experience is no longer an added value. It is the value.
