This week’s TAMIM Reading List explores the unexpected intersections of history, culture, and global economics. From the peculiar world of Dog College to the real-life influence of Grand Theft Auto on teen crime, we examine the surprising ways society evolves. Travel back in time with a WWII sword mystery and embrace the wisdom of Japanese life principles. Meanwhile, trade wars are reshaping clean energy, and tariffs may not be as bad as you think. Discover the mind-bending scale of fundamental particles and uncover the secrets behind Saturday Night Live. Finally, step inside one of America’s most chaotic divorces.
In the ever-evolving world of technology, few voices carry as much weight as Marc Andreessen. As one of Silicon Valley’s most influential venture capitalists and co-founder of Andreessen Horowitz, he has been at the forefront of technological innovation for decades. His insights shape how investors, entrepreneurs, and policymakers think about the future.
In a recent podcast, Andreessen shared a powerful perspective on the battle for tech supremacy, the role of AI, and the critical forces driving the next wave of innovation. Whether you’re an investor, a business owner, or just someone curious about the future, his insights provide a roadmap for understanding where the world is heading.
1. The Battle for Tech Supremacy: A Shifting Power Dynamic
At the heart of the discussion is the global race for technological dominance. According to Andreessen, the biggest battles in the world today are not fought with tanks or missiles but with software, artificial intelligence, and digital infrastructure.
Key Idea: The Rise of the Tech Titans
Tech giants like Google, Microsoft, Amazon, and Apple are no longer just companies; they are power centers shaping economies and societies. Their ability to collect data, influence global markets, and deploy AI gives them unprecedented control over the modern world.
These companies are building and owning the infrastructure of the digital economy – cloud computing, AI models, and software that powers businesses worldwide.
Unlike traditional industries, tech moves at an exponential pace, making it difficult for governments to regulate or keep up.
Countries and companies that fail to invest in cutting-edge technology risk being left behind.
Takeaway for Investors: The big tech players will continue to dominate, but opportunities exist in companies that build critical AI and software tools. Understanding where technology is heading is key to making smart investment decisions.
2. AI Will Reshape Every Industry – Are You Ready?
One of the most significant themes in Andreessen’s discussion is the rise of artificial intelligence (AI). He describes AI as the most transformational technology of our time, likening its impact to electricity or the internet.
Key Idea: AI as a Force Multiplier
AI is not just another tool – it’s an amplifier that enhances human capabilities. Whether it’s automating repetitive tasks, accelerating research, or personalising customer experiences, AI is already reshaping industries.
Healthcare: AI-driven diagnostics are detecting diseases earlier than human doctors, reducing medical errors, and optimising patient care.
Finance: AI-powered trading and fraud detection are improving efficiency in global markets.
Creative Industries: AI-generated content is revolutionising marketing, journalism, and entertainment.
Software Development: AI can now write and debug code, accelerating innovation in tech.
Takeaway for Individuals and Businesses: AI is here to stay, and its impact will only grow. Instead of fearing job loss, think about how AI can enhance your work. Learning to work alongside AI will be a key skill for future careers.
3. The Centralised vs. Decentralised AI Debate: Who Controls the Future?
A critical discussion in the podcast is who should control AI – big tech companies or decentralised, open-source communities?
Key Idea: The Battle Between Big Tech and Open-Source AI
Big Tech (Google, Microsoft, OpenAI, Amazon) is investing billions into AI, controlling the most powerful models. Their centralised approach ensures scale, security, and efficiency, but it also raises concerns about monopolisation.
Open-Source AI (Meta’s Llama, Stability AI, Mistral) is challenging this dominance by making AI accessible to everyone. This fosters innovation, competition, and transparency but also creates risks, such as AI misuse.
Why does this matter? If a few companies own and control AI, they dictate how it is used and who benefits from it. On the other hand, if AI is decentralised, it becomes more democratic but harder to regulate.
Takeaway for Investors and Consumers: Understanding this battle helps predict where AI investment opportunities will emerge. Whether it’s startups challenging big tech or the next wave of AI-driven companies, knowing who controls AI is key to making informed decisions.
4. The Future of Work: Will AI Replace Jobs?
One of the biggest concerns about AI is job displacement. Will machines take over human work? Andreessen provides a balanced view on this issue.
Key Idea: AI Won’t Replace Jobs – It Will Change Them
AI will automate repetitive and predictable tasks, but humans will still be needed for creativity, problem-solving, and interpersonal work.
In every industrial revolution, technology has created more jobs than it has destroyed. The key is adapting and upskilling.
AI is best thought of as a co-pilot assisting workers rather than replacing them outright.
Takeaway for Workers and Employers: The best way to future-proof your career is to develop skills that AI cannot easily replicate – critical thinking, leadership, and adaptability.
5. The Geopolitical AI Race: The US, China, and the Global Battle for AI Dominance
AI is not just an economic force – it’s also a geopolitical weapon. Countries that lead in AI will have a major strategic advantage in global affairs.
Key Idea: The US vs. China in AI Development
China is investing heavily in AI, aiming to become the world leader by 2030.
The US remains dominant, but concerns about regulation, ethics, and competition may slow innovation.
Governments worldwide are beginning to regulate AI, but too much regulation could stifle innovation.
Takeaway for Global Investors: Understanding how different countries regulate and invest in AI will be crucial in predicting the next wave of tech giants.
6. The Opportunity for Entrepreneurs and Investors
Despite the challenges and risks, Andreessen is extremely optimistic about the future. He believes that the next great companies will be built on AI, automation, and software-driven innovation.
Key Idea: The Best Time to Build and Invest is Now
AI is still in its early stages, meaning there’s massive upside potential.
Many industries are ripe for disruption, including healthcare, education, finance, and cybersecurity.
The best entrepreneurs will embrace AI, using it as a tool rather than resisting it.
Takeaway for Entrepreneurs: If you’re building a business, integrating AI will be essential to staying competitive. Takeaway for Investors: The AI revolution will create long-term winners—identifying them early will lead to significant investment opportunities.
The TAMIM Takeaway
Marc Andreessen’s insights highlight a once-in-a-generation transformation happening in technology. Whether you’re an investor, a business owner, or just someone interested in the future, understanding these shifts will be critical.
Key Takeaways for Everyday Australians:
Tech is Dominating the Economy – The companies that control AI, software, and cloud computing will shape the next decade.
AI is an Opportunity, Not a Threat – Rather than replacing jobs, AI will enhance them. Learning to work with AI is key.
Regulation vs. Innovation – Governments must balance protecting consumers while allowing AI to flourish.
The AI Investment Boom is Just Beginning – There is massive potential in companies leading the AI revolution.
For those who want to stay ahead of the curve, embracing AI as a tool rather than a threat will be one of the most valuable skills of the next decade.
So, whether you’re investing, building a business, or simply looking for the next big trend, AI is where the future is headed and Marc Andreessen is making sure we all pay attention.
Source: O’Shaughnessy, P. (Host). (2025, February 11). Marc Andreessen – The Battle For Tech Supremacy [Audio podcast episode]. In Invest Like the Best. Colossus. https://open.spotify.com/episode/2vyhZy6vdwNbHkGuSmfWtQ
Australia’s Banking Giants Face a Changing Landscape
With the Reserve Bank of Australia (RBA) cutting the cash rate by 25 basis points to 4.1%, all eyes are on how the major banks will adapt. Lower rates may provide relief for borrowers, but they also pressure bank margins. This week, we revisit two of Australia’s biggest financial institutions Commonwealth Bank (ASX: CBA) and Westpac (ASX: WBC) to assess their latest results and whether the market reaction has been justified.
We last examined these two banks in late 2024, highlighting our concerns around valuations and Westpac’s rising costs. As we reassess today, those concerns remain, though the outlook for each bank has evolved.
Commonwealth Bank of Australia (ASX: CBA): The Profitability Leader
CBA continues to set the gold standard among Australia’s major banks, delivering strong results that surpassed expectations. Half-year net profit after tax (NPAT) came in at $5.13 billion, a figure supported by higher loan growth and lower loan impairments – no small feat given the inflationary environment and rising cost of living.
On the risk front, mortgage arrears have nudged slightly higher to 0.66% (from the historical average of 0.65%), but overall non-performing exposures have actually declined from 0.98% to 0.95%. This is critical, as we previously flagged CBA’s high exposure to housing risk. So far, the bank appears to be managing it well.
CBA remains the leader in net interest margin (NIM), which ticked up slightly to 2.08%, a strong performance considering the broader margin pressure across the industry. While we expect this to decline slightly over the next year due to rate cuts, CBA’s disciplined balance sheet management should provide a buffer.
Operating expenses did increase by 6%, though much of this was tied to strategic investment in technology and digital transformation rather than spiraling wage costs. Importantly, 77% of the bank’s funding comes from customer deposits, reinforcing its stability in uncertain market conditions.
For income-focused investors, CBA announced a 5% dividend increase, with an interim payout of $2.25 per share. However, at current share prices, the yield still sits about 100 basis points below what’s available through a 12-month term deposit with the same bank a reminder that valuation remains a key consideration.
Weaknesses: Heavy reliance on the housing market, expensive valuation (P/E ratio of 27).
Westpac (ASX: WBC): The Mixed Performer
In contrast to CBA’s strong performance, Westpac’s latest results have been met with skepticism, with Morgan Stanley cutting its price target to $29.20. But is the market overreacting?
At first glance, headline profit fell 9% to $1.7 billion in Q1, which has triggered concern. However, this was primarily due to hedging provisions, which are expected to unwind over time. Adjusting for this, underlying NPAT actually grew by 3% to $1.9 billion, a more positive signal than the initial headline suggests.
Westpac’s loan-to-deposit ratio improved to 83.9%, and its CET1 capital ratio of 11.9% remains robust. However, the real concern lies in its credit quality and operational performance compared to CBA.
Non-performing assets: 1.39% (compared to CBA’s 0.95%)
Mortgage arrears: 1.03% (notably higher than CBA’s 0.66%)
NIMs: Declined to 1.81%, continuing a downward trend
Return on Equity (ROE): Dropped 88 basis points to 9.4%
Operationally, Westpac’s digital transformation and cost-cutting initiatives appear to be progressing, which could provide benefits in the coming years. However, the bank is still grappling with higher costs and declining margins, making execution risk a key concern.
Key Takeaways for Westpac:
Strengths: Strong capital position, ongoing digital transformation.
With interest rates shifting, the performance of Australia’s major banks will be closely watched.
CBA remains the standout, delivering exceptional results with strong risk management and continued leadership in profitability. However, its premium valuation means new investors should weigh the price before jumping in.
Westpac, while not as bad as the headlines suggest, still has hurdles to overcome. The bank’s cost-cutting and digital strategy could bear fruit over time, but higher arrears and declining NIMs make it a riskier proposition than CBA.
For investors, CBA offers stability and strong execution, albeit at a high price, while Westpac may provide value if it can successfully navigate its current challenges.
Would we hold either? That depends on your risk appetite and whether you believe Westpac can turn things around. At Tamim, we’re always looking for well-managed businesses at attractive prices something to keep in mind when evaluating these two banking giants.
Disclaimer: Commonwealth Bank of Australia (ASX: CBA) is held in TAMIM Portfolios as at date of article publication. Holdings can change substantially at any given time.
What makes the TAMIM Credit Fund stand out in a crowded private debt market? From access to top-tier managers to rigorous due diligence and flexible liquidity, this open-ended investment could complement your portfolio. Curious how it works? Let’s dive in.
Disclaimer: All investing entails risk – please read disclaimer on our website for more details – www.tamim.com.au.
How can the U.S. reinvigorate private investment and stabilise the green transition? Robert Swift stresses the need to boost domestic investment while balancing renewables with fossil fuels to ensure economic stability. With rising demand for commodities like copper and lithium, Swift points to companies like Schlumberger, BHP, and Sumitomo Electric Industries as pivotal players in this shifting landscape.
Disclaimer: NYSE: SLB and ASX: BHP held in TAMIM portfolios. All investing entails risk – please read disclaimer on our website for more details – www.tamim.com.au.
CBA continues to set the gold standard among Australia’s major banks, delivering strong results that surpassed expectations. Half-year net profit after tax (NPAT) came in at 
In contrast to CBA’s strong performance, Westpac’s latest results have been met with skepticism, with Morgan Stanley cutting its price target to 
