The Lucky Country tends to lack the entrepreneurial spirit.
The reasons behind this are many, my personal view is that it’s a function of the incentives in the economy; for four decades, Australians have been rewarded by investing in property or working in industries relating to it.
The corollary to this is that there’s been few reasons and rewards for investing one’s cash or pension into stocks, shares, bonds and non-property assets.
Some people have won bigly in this environment. Fair play to them, they followed the cues and were rewarded accordingly.
Mark Bouris is one such big winner. In the 1990s he made his fortune in the mortgage finance business and has continued to go from strength to strength ever since.
The danger of viewing this type of success from a distance is believing that it is a) due to the unique and mercurial skills of the winner and, b) that it is repeatable across industries and markets or indeed, time.
In other words, just because Mark made a large fortune from real estate in a market where everyone made small fortune from real estate, it doesn’t necessarily follow that he can continue to make money in different areas or even in his area of expertise.
Today will be interesting, therefore; Yellow Brick Road shares suspended after trading close.
In a rising market, everyone is a genius.
Mark Bouris’ Yellow Brick Road might be having some innocent difficulties with the regular filing requirements.
On the other hand, 18 months into a property price downturn and an environment of tighter lending, one company has to be the first major casualty.