“How do you Generate Alpha in the Intangible Economy?”

As of December 2020, the world’s four largest companies, by market capitalization, are Apple, Microsoft, Amazon and Alphabet. They are representative of the intangible economy, where the majority of a company’s value is created by intangible assets, such as intellectual property, quality management and network effects. This is a significant shift from 30 years ago, when companies, like AT&T and GE, that mainly produced physical assets, were dominant players in the economy. Today, more than 90% of the market value of S&P 500 companies is estimated to be intangible assets. Read more here.