4. What is Productivity?
Productivity = Ratio of Output for each Input of Labor, Equipment and Capital/Cash
Efficiency = similar to Productivity but takes into account Effectiveness & Wastage (input focus)
You can be Productive but not Efficient if you consume a lot of resources to perform something quicker!
Measured By: Minutes Per Good Produced or Revenue per Employee or Revenue Per Total Comp
US Productivity Improvements = +2% Annually (Peak was „00-‟07 at +2.5% average annually)
Technology is #1 Driver of Productivity due to Innovation (Tech = ~25% of Cabot Equities exposure)
5. What is Productivity?
US derives 80% of its GDP from Services (Only 20% from Manufacturing compared to 36% 1980; World Bank)
6. What are the Benefits of
Productivity/Efficiency?
Higher Standard of Living (#1 benefit)
Better Innovation (#2 benefit and underappreciated)
Time & Cost Savings (from a reduction in work hours per
project or lower overall cost per unit of achievement)
Improved Education
More Availability of Medicine
Improved Social Programs
Increased Real Incomes (more so in emerging markets)
7. Productivity Examples In Our Lives?
Computer Tablets & Smartphones (every 2.5
Internet cannibalize 1 desktop or laptop)
Ecommerce Digital Wallet/Dollars
Cell phones Electronic Medical Records
Software Applications Laser or Robotic Surgeries
GPS Navigation Devices MRI‟s
Mobility Extended Battery Life
Blogging & Text Messaging Automobiles (not horse & carriage)
Air Travel
Alternative Energy (Solar & Wind)
8. Stock Specific Trends?
Datacenters Storage
Mobile Devices
Enterprise Relationship Software
Global Sharing Capabilities of Data & Health Records, etc
Cloud Computing (Virtualization & Software As a Service)
Cyber Security & Privacy
3D Printing
Solar Panels or Wind Farms
9. The Downside of Productivity?
Loss of Work hours & Jobs = Higher Unemployment because not as many
workers needed to be hired to replace others (Outsourcing to Asia, etc)
More Distractions (constant online news flow, too many emails, wasted
time browsing internet, online video games, social media overindulgence)
Easily Impacted by Cultures (countries or workplace), Location,
Optimization, Resources Availability
Cyber Security Issues & Identity Theft
Need to address Bottlenecks, Workflow Inhibitors & Unmotivated Workers
Not Easily or Objectively Measurable (3 different models/formulas to measure
it with each having its own merit and validity)
10. Big Data & Mobile Revolution
Dennis Wassung, CFA®
Portfolio Manager
Cabot Money Management, Inc.
216 Essex Street
Salem, Massachusetts 01970
800-888-6468
eCabot.com
14. Investment Opportunities
Mobile Devices & Components
Internet & Data Infrastructure
Security – Network & Data
Cloud Computing & Internet Software
15. Genomics and Personalized Medicine
Craig Goryl, CFA®
Equity Analyst
Cabot Money Management, Inc.
216 Essex Street
Salem, Massachusetts 01970
800-888-6468
eCabot.com
16. Genomics – What is it?
Genomics – The study of organisms‟ hereditary
information. An organism‟s genome is its
complete set of DNA.
DNA – The chemical compound containing
instructions for developing and directing all the
body‟s activities. An identical copy is in each cell.
DNA Sequencing – The process of determining
the exact order of the chemical bases that make
up DNA, about 6.2 billion in total for a human.
The map of a person‟s DNA can tell us a lot about them, from their eye
color to their likelihood of developing cancer. Scientists understand parts of
the map, but most of it is still a mystery.
17. Genomics – Why is this Important?
Predictive Medicine – Based on my DNA, what are my chances of
developing a particular disease?
Diagnostics – What disease is this? Is it an aggressive form in need of
treatment, or is it better to wait?
Therapeutics – What causes this disease, and what drugs will cure it?
At the heart of genomics is the promise of personalized medicine. Because of
differences in DNA, treatments do not work the same for everyone. Someday
our current practice - prescribing the same drug for everyone who has a
given disease - will seem archaic. This is truly a revolution in healthcare.
18. Genomics – Key Trends
Sequencing – Getting faster and
cheaper every day
Bioinformatics – Managing and
analyzing huge data volume is a
problem
Commercialization – What knowledge is public domain? What is
proprietary?
19. Genomics – Key Trends
Privacy and Ethics
Your DNA map is deeply personal; you wouldn‟t want to share
it. Yet insurance companies can‟t operate with “information
asymmetry.” They need to know what you know, or their
business model falls apart.
Infants and DNA sequencing – Where should we draw the line
on unnatural selection or modifying DNA? Where will other
cultures draw it?
Is it helpful or harmful to know my chances of developing
Alzheimer's? Who else should know? What is the accuracy of
this prediction?
20. Genomics – Investment Opportunities
Sequencing equipment – This is an increasingly competitive
space with some parallels to personal computing. But sequencing
companies are positioned to expand into other products like
DNA analytics, informatics, storage, etc.
Diagnostics – the most advanced area in terms of
commercializing our knowledge of genetic information; a
beneficiary of cheap sequencing.
Ongoing research – We are always learning and searching for
new ways to help our clients capitalize on this important theme.
