Amazon.com Inc. (AMZN) & Facebook Inc. (FB) As Potential Investment Managers

In a recent live interview from Monaco with CNBC, Tom Brown, who is the global head of investment funds at KPMG, shares his thoughts about how technology companies like Facebook Inc. (NASDAQ:FB), Amazon.com Inc. (NASDAQ:AMZN), Google Inc. (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL), etc. could make their entry into a completely different industry of financial services.

top smartphone apps employers don't allow their staff to use

He said:

“Our lives are all changed by use of tablets and mobiles. We expect to organize our lives on these things.”

He also gave an example of how Alibaba.com has launched a funds platform in China and have succeeded in taking funds worth billions onto their platform.

Brown added

“We can expect companies like Amazon, Google, Apple, to be thinking about financial services and thinking about investment management.”

On being asked about the feasibility of replication of Amazon.com Inc. (NASDAQ:AMZN)’s China strategy by U.S. companies like Amazon.com Inc. (NASDAQ:AMZN), Google Inc. (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL), in a more developed market like the U.S., Brown said, “I think there is a brand issue around some of these companies, there is a high degree of trust in some of these big technology companies that maybe the financial services hasn’t got.”

According to Brown, the combination of financial services and trusted brands like Amazon.com Inc. (NASDAQ:AMZN), Google Inc. (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL), etc., which can get people to interact and organize their lives around the company’s services and devices, would be a very powerful combination.

On the question as to how should fund managers target clients in such a changing industry, with a diverse client base and shrinking margins, Brown replied:

“The future is very different. Generation X, generation Y are going to expect very different ways of dealing with their financial services providers.”

Brown said that it was necessary for fund managers to embrace new technology and also to focus on developing markets, like Indonesia, Mexico, China, etc. He added that even though banks have expanded into developing countries, they still need to tap the savings and investments available over there.

Tybourne Capital Management, run by Eashwar Krishnan raised its stake in Amazon.com Inc. (NASDAQ:AMZN) by 72% in the first quarter to 448,325 shares. Christopher Lyle‘s Scge Management also upped its stake by 70% during the same period to 170,000 shares.

Watch the full video below:

Disclosure: none

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!