/Education

What Happens to Tall Buildings?

WHAT HAPPENS TO TALL BUILDINGS? As technology improves we become more and more productive. Which in turn means that each square metre of land becomes more and more valuable. Given that we have the propensity to ensure that land is used for the most productive purpose, by definition our cities must become more and more dense as we continually build higher and higher. Land will seek to be used for the highest productive value. As land becomes more scarce (and hence more expensive) it pays to amortise this cost by building higher and higher. That is the more floor space you build up, the less the amortised cost of the land becomes. Technology, zoning (government legislation) creative thinking, and available cash will determine how high we reach to the sky. But to build persistently skyward, […] 150
By | 2018-09-21T11:01:40+00:00 August 12th, 2018|Cycles, Education, Property|0 Comments

The Thing About Trump!

THE THING ABOUT TRUMP! I was surprised by the reaction to my blog “The Locational Value of North Korea” sparked. I wasn’t making any political statements or endorsing the actions of those investors that have chosen to purchase a new beautiful off the plan Trump apartments in North Korea’s pretty seaside location of Wonsan…… The point of the blog was not to say the Trump’s vision was correct or fair or that Dennis Rodman is the real economic brains behind North Korea – but to make the point as to how Donald see the world. How he thinks. It’s different you know. He might be the president of the USA. He might be the “Most Powerful Man in the World” – or 2nd most, if he really does work for the Kremlin?! However, regardless of his position, title or how […] 150
By | 2018-09-21T11:12:11+00:00 July 23rd, 2018|Cycles, Education, Property|0 Comments

End of the Horse

END OF THE HORSE In 1900 it was completely inconceivable as to how the automobile would change society. Who could have predicted the speed at which we moved from the horse and cart to the car? The picture below is Fifth Avenue in New York City in 1900. It’s a photo of elegant buildings, a crowded sidewalk and an orderly street awash with Horse and Carts. This was how life was. Everything that moved in and out of a city C1900 did so by foot or by horse and cart. People, food, waste, books, clothes, pots, pans and anything else required to make a city function. When you think about it in these terms it makes you realise the profound impact that the four-wheeled revolution had. This radical contraption completely revolutionised not only how you lived in a city, but the whole context of how it […] 150
By | 2018-09-21T12:05:50+00:00 February 28th, 2018|Cycles, Education|0 Comments

What Big Teeth You Have

WHAT BIG TEETH YOU HAVE! It was Little Red Riding Hood who naively said “What Big Teeth You Have’ to the Big Bad Wolf. His response “All the better to eat you with’ has struck terror into the hearts of many a child. This same feeling of terror is currently being felt by many segments of society as technology bares its metaphoric “FAANGs”: Facebook, Amazon, Apple, Netflix and Google (now renamed Alphabet). It’s not just the older or less tech savvy people that are feeling the heat. Old business models are under pressure as the relentless technology gains are disrupting commerce. In 1997, Amazon’s letter to shareholders proudly included the following statement: “We established long-term relationships with many important strategic partners, including America Online, Yahoo!, Excite, Netscape, GeoCities, AltaVista, @Home, and Prodigy.” Now think about this for a moment. Think about these strategic partners. America […] 150
By | 2018-09-21T12:14:28+00:00 December 18th, 2017|Cycles, Education|0 Comments

1987’s Black Monday, but what did we learn?

1987’S BLACK MONDAY, BUT WHAT DID WE LEARN? It was the stuff movies are made of. White knuckled brokers frantically screaming “Sell, Sell, Sell” – desperately seeking any offer they could. The problem was, there was no one willing to take the other side – not even a whimper of a “buy”. The tsunami of selling wiped a staggering 25% or $65B off the Australian Stock Market in one day. Stunned stockbrokers just stopped answering phones amidst the chaos that surrounded them. It was the era of the corporate raider. The quintessential Fat Cats, riding high and flushed with cash. Borrowed loot – anyone’s cash but their own. Christopher Skase had bloated Qintex. Rodney Adler was wrecking FAI Insurance and Bond had the trifecta, the Americas Cup, Cash and his memory……. Both […] 150

Premierships are Won in October!

Australians love our sport and its Grand Final Weekend! Crows v Tigers               Storm -v- Cowboys What a weekend! But for these teams, their fate of playing in the Grand Final stems from ACTIONS taken LAST OCTOBER…… Ian Flack knows elite sport – he worked in the AFL system for over 25 years. Recruiting, administration and high-performance coaching with clubs like Collingwood and Melbourne. It’s a brutal environment. There are enormous cross overs between Elite Sport and Investing. The need to focus, be resilient and well prepared. The ability to perform under pressure and understand and control your own personal psychology. When working in AFL, one of Ian’s core mantras was “Premierships are won in October”. Sounds kinda crazy when you think about all the hype and excitement that is going on now? The “momentum” that teams bring into the finals, injuries and the 150
By | 2017-10-05T14:57:17+00:00 September 29th, 2017|Cycles, Education, General, Wealth|0 Comments

The Future is Here. ……. It’s Just a Little Slow.

THE FUTURE IS HERE…IT’S JUST A LITTLE SLOW The future is upon us, its just starting out a little slow. But don’t be fooled or underestimate just exactly what is happening and what the undisputable outcome will be. It just may surprise us where these changes are popping up and the massive impact they will have. Recently I was in Darwin, my youngest making the SA State footy team and we stayed in an apartment on the beautiful Waterfront. A spectacular view and another classic example of how infrastructure & some congregation of population gives some land a locational advantage resulting in sky high apartment prices! It is staggering when you think about it – Waterfront land is abundant in Darwin. Its population a mere 110,000. Less than 230,000 in the entire NT. Yet a 3 bed apartment with water […] 150
By | 2018-09-21T13:10:18+00:00 September 1st, 2017|Cycles, Education, Property|0 Comments

That was then. This is now!

THAT WAS THEN. THIS IS NOW! Recently, I was shown the most stunning news article I’ve seen for a while – showing you exactly how to benefit from the cycle! You see the other day, Alice, a Calnan Flack Investment Club Member sent me a fantastic link to an article on news.com.au that I think you all should have a look at! Famed economist David Ricardo told us that as a society, when we become more productive and hence more profitable, land with locational advantages would become more and more desirable resulting in the price being bid up sky high. Back in his day, he was referencing fertile agricultural land against sterile barren lands. You just need to visualise rich green pastures with abundant warmth and water compared to land on a backdrop of a dry desert landscape or a […] 150
By | 2018-09-21T13:11:56+00:00 August 18th, 2017|Cycles, Education, General|2 Comments

But Can They Run on Time?

BUT CAN THEY RUN ON TIME? At Calnan Flack we talk a lot about the Wealth Creation opportunities that surround us if you learn to see the Economic and Credit Cycle in action. We talk about the Economic Drivers being Population, Technology, Infrastructure, Government Granted Licenses and of course the Credit creation process! Our Economic Cycle Action Plan provides the framework to understand the cycle and the action we need to take to leverage the opportunities it presents to grow your wealth. By studying history, we can further enhance our knowledge of how events impact society and asset prices. Yet few seem to look back into the future an learn from the past. Learning from history and its relevance to life today is not  reserved for tweed jacket wearing types who love to contemplate history through a well-worn book. Studying history gives […] 150
By | 2018-09-21T13:13:34+00:00 August 12th, 2017|Cycles, Education, Wealth|0 Comments

‘I Read the News Today, Oh Boy?’

‘I READ THE NEWS TODAY, OH BOY?’ It was the Beatles who sang “I read the news today, oh boy” – so have you? CBA are all over it. Money laundering! Can you believe it? It’s hard to imagine after all the bad press they had re their financial planning and insurance division that things could get any worse? But now we hear that the CBA has facilitated the transfer of millions of dollars for a wide web of criminal syndicates. These foreign criminals and drug traffickers launder literally millions through Australias biggest and highly regulated bank – the Commonwealth Bank. AUSTRAC (the Australian Transaction Reports and Analysis Centre has alleged in excess of 50,000 contraventions since 2012 of Australias Anti-Money Laundering and Counter-Terrorism Financing Act 2006. Interestingly enough, it is thought that the CBA’s rollout of its […] 150
By | 2018-09-21T13:15:36+00:00 August 8th, 2017|Education, Shares|0 Comments