Perspectives
Cashflow Comes in Many Forms and Sizes
January, 2024
The Tacit investment process is biassed towards companies that exhibit strong cash flows and can grow these cash flows irrespective of the economic environment which prevails globally. This approach can lead investors towards defensive and dull companies which do not rely on strong economic growth for their business models to increase cash flows year on […]
Back to Basics
January, 2024
It is, perhaps, hard to believe that the 5-year anniversary of the Covid pandemic will occur later this year. The clue is to be found in the number 19 since novel viruses are named after their year of discovery. The full economic ramifications of that period, bound up as it is with Brexit and the […]
Patience Pays
January, 2024
As in each of the previous 13 years, we start this year with a recap of returns that were generated in the previous year, 2023. The table below provides the returns for the calendar year from a selection of asset classes including cash, UK government bonds, UK equities, and international equities. Following a period when […]
Cash: Losing its Crown
December, 2023
It is monetary policy week in the key G7 economies, and the Federal Reserve in the US has already landed with, perhaps, an early Christmas present but just possibly a hint of a gnarly New Year hangover. The United States sets the tone and direction for developed world interest rates. The world economy is highly […]
Are geopolitical events the cause or effect?
December, 2023
At Tacit we believe that economics is a powerful factor in geopolitics. The connection between economic growth and conflict is intricate, with scarcity often serving as a catalyst for social unrest and conflict. Economic downturns intensify competition for resources, exacerbate inequalities, and strain governance structures, creating conditions conducive to conflict. The relationship between economic growth […]
Recency Bias
December, 2023
TACIT THOUGHT LIVE RECORDING We held a client Webinar on 27th November, where our Chief Investment Officer, Raj Basra, covered the current economic and market environment and the rationale for the recent changes that we have made to portfolios as we head into 2024. A recording of the event is available using the links below. […]
That Sucking Sound is a SaaS
November, 2023
Remember when you used to save up to buy something which you could then call yours: films, cassettes, CDs, LPs, computer software and games for example. In return for an upfront fee, you got the product and no further questions asked. As you will know times have moved on. Almost all forms of entertainment, software […]
Technology is everywhere, you just need to look
November, 2023
When we think of technology companies names such as Microsoft, Facebook (Meta), Google (Alphabet), Apple and Amazon immediately spring to mind. These companies started out as technology companies and are now involved in many if not all aspects of modern life. They collect our data to monitor our habits and then use this information to […]
Has Goldilocks left the room?
November, 2023
Some of our readers will remember the era of the private client stockbroker whose obsession was with dividends – the yield on a share, the dividend cover and the history of the company growing its dividend. This was also an era in which most investors strictly compartmentalised capital and income. Preserving capital, or at least […]
The Importance of Liquidity
October, 2023
The Tacit investment approach places a very high value on liquidity when selecting investments due to the team’s experience rather than a academic dislike of certain investments. During the 2008 credit crunch, whilst working for some very large investment companies, we experienced first hand how certain assets do not fit comfortably with an investor’s needs […]