Mike Smith, the CEO of ANZ, in an interview with “In the Black” the CPA Australia magazine, says:
“Capital goes where it’s most welcome. It’s like water, it goes to the place of least resistance. It trickles down to the place where you don’t have regulation and bureaucracy and hurdles.”
I totally agree. There’s a couple of investing truisms:
“Money goes where money flows”
“money goes where money grows”
When you place regulation, bureaucracy and hurdles in the way of capital, capital takes it personally.
That’s true of both national economies and personal economies.
What hints does Mike have for Australia’s leaders to reduce barriers and become less resistant to capital?
1. Curiosity – in all sorts of forms. Don’t be resistant to change. Don’t think “if it’s not broken, why fix it?”. Instead, think “it could be better”.
2. Uncertainty – embrace change as opportunity. See it as a business opportunity. Try to take it to as high a level as you can; “How will this effect the whole view?”
3. Instinct – as you get more experienced, instinct becomes more important than data. “Have the confidence to use your instinct – particularly when the PowerPoints are against you”.