Dear Friends: Welcome to Crucial Perspective, your guide to Asian transport equities.
My motivations behind the founding of Crucial Perspective can be traced back to perhaps an idealistic re-imagination of a time when equity analysts were driven primarily by a desire to produce truly original and insightful research. Unfortunately after fifteen years as a sell-side equity analyst in the world’s largest financial institutions, I find it difficult to believe whether such a time even existed.
Today’s equity research industry is characterised by shrinking budgets, overstretched analysts and generally mediocre analysis. Everyone knows that better research is much needed but the industry’s state of flux is matched only by the uncertainty of how to effect these much needed changes.
It is my hope that Crucial Perspective will contribute, at least in some small part to a new period of independent equity research excellence. I have been blessed to be able to spend the last fifteen years specialising in Asian transport equity research and there is still much to learn. Therefore, my singular focus on Asian transport will continue at Crucial Perspective because insightful analysis starts from a deep understanding of how companies actually operate.
While Asian transport is a fascinating and hugely important industry, it is often neglected by the major sell-side equity research firms because the relatively smaller market capitalisations of the Asian transport equities results in lower brokerage income.
Compounding this problem is the way in which Asian research coverage is often allocated on the sell-side. For administrative purposes, Asian research coverage has long been divided into ‘virtual silos’ along the lines of individual countries or regions, e.g. Asia ex Japan, ASEAN, Australia, Japan, etc (these regional groupings are arbitrary and differ from firm to firm). This type of research coverage division in Asia might be suitable for industries like banks, property, telcos and utilities but is simply not feasible for transport equities. Our transport research at Crucial Perspective emphasises a holistic regional view that includes Australia, China, Hong Kong, Japan, Malaysia, Singapore and Taiwan; we believe that bureaucracy should not get in the way of good research.
Crucial Perspective believes in the empowering effect of a free and open internet. Therefore I will endeavour to keep Crucial Perspective free to use for everyone, through the use of advertising revenues. I believe that such a business model is also the best way to maintain our research independence.
So if you have found this website to be useful, it would be greatly appreciated if you could recommend us to your business associates and friends.
May you have a fantastic year ahead and God bless.