The coming wake-up call for Australia's corporate giants - Business Spectator
Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report. Australia’s most profitable businesses are increasingly at risk from unwanted competition attracted by eye-popping returns of over 40 per cent on every dollar invested, even in a 2 per cent interest rate environment. Instead of ploughing the profits back into new business streams or acquisitions, companies are not investing to sustain growth but paying out a rising proportion of their earnings to shareholders, egged on by investors defeated by a low-yield... This unusual combination of record profits and weak investment leaves Australia’s oligopolistic powers – the major banks, general insurers, private health insurers, supermarkets and energy retailers – at threat from unwanted competition, attracted... With limited options for further growth, many of these companies have pushed the economic terms they are charging their customers to unhealthy levels, he notes, adding that “in many cases incumbents are over earning and under investing, a... Source: www.businessspectator.com.au
