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Brandometry
From Wikipedia, the free encyclopedia
Brandometry is a New York-based provider of investment indexes that facilitate access to opportunities built around the increasing value of intangible assets and brand. Founded in 2015, it is widely known for employing the first structural investment theme built on brand.
History
Brandometry LLC was founded by Larry Medin, Susan Avarde, and Tony Wenzel. The EQM Brand Value Index (.BVAL) is designed to identify companies with well-known brands whose value has not yet been fully realized in their stock price. The Brand Value Index employs both qualitative and quantitative data for constituent selection (brand signals and financial data).
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Context
According to intellectual property consultancy Ocean Tomo[1], a management and advisory services firm centered on intellectual property, 87% of the value of the S&P 500 resides in intangible assets. In 1975, only 17% of the value of the S&P 500 resided in intangible assets. This marks a tectonic shift in the way companies invest capital, manage research and development, and generate value.
In their study, “What Ideas Are Worth: The Value of Intellectual Capital In the American Economy[2]”, Shapiro and Hassett suggest that in 2011, the value of intangible assets in the US economy, including intellectual capital and economic competencies, was approximately $14.5 trillion.
Consider that Airbnb owns no properties, Uber owns no vehicles, and Apple produces no music. Each of these organizations run businesses built upon software platform solutions. In other words, intangible assets. Most corporate value is generated via intangible assets; most corporate investment is made in intangible assets, too. Yet, intangible asset value is not tracked in financial statements. So, there are significant economic implications for investors without information about intangible asset value.
Marketers have been building brands for decades and corporations consider their brand to be a business asset. Now investors can mine the intangible value created.
Economic Relevance
Brandometry provides meaningful and differentiated information on which to base investment decisions.
Haskell and Westlake explain the idea of “Return on Intangible Investment”, in the 2017 book, “Capitalism Without Capital: The Rise of the Intangible Economy” and describe how intangible investments leverage unique characteristics, including: scalability, synergy, and spillover to generate disproportionate value growth.
Yuval Harari, in the 2016 book, Homo Deus: A Brief History of Tomorrow, makes the point that "ideas" now form a third, and limitless, primary resource. And, where raw materials and energy can be depleted, ideas have the ability to overcome a poverty of the either or both.
Intangible assets are the engine of the modern economy but are not tracked in any useful way for investors. Financial statements are the primary source of information on a company’s worth, yet do not track intangible asset value. Brand is the collective face of all intangible assets. The Brand Value Index was designed to give investors the information required to generate return on intangible investment.
Partners
External Links
Brandometry, Twitter Page
References
Ocean Tomo "What Ideas Are Worth: The Value of Intellectual Capital In the American Economy[1]", Shapiro & Hasset
"Capitalism Without Capital: The Rise of the Intangible Economy[2]", Haskell and Westlake
"Homo Deus: A Brief History of Tomorrow[3]", Harari
- ^ Shapiro & Hassett (2011). "What Ideas Are Worth; The Value of Intellectual Capital in the American Economy" (PDF). http://www.sonecon.com.
{{cite web}}: External link in|website= - ^ Haskell & Westlake (2017). Capitalism Without Capital: The Rise of the Intangible Economy. Princeton University Press.
- ^ Harari, Yuval (2016). Homo Deus: A Brief History of Tomorrow. Harvill Secker.