Day1 Tel aviv stock exchange and Better Place

21 Jan

Tel aviv stock exchange is the engine of Israel’s economy.

Kobi Avramov made us a quick presentation of Israel’s economy:

225billion dollars in global market cap at the Tel Aviv Stock Exchange.
GDP growth is on average 5% a year.
40% of GDP are exports.
30000$ GDP per capita per year.
there is a 2-3% inflation rate on average per year in Israel.

About the Stock Exchange:

Openedd in 1953 it is now a fully automatized exchange that is operated by computers electronically
It is an important vehicle for companies to raise money.
Capital gains on stocks are taxed at 25%.

Most of the ownership is Israeli based. The data for foreign investors was not available and would be hard to monitor, because trading is anonymous.

The market is not very big and the geopolitical situation of Israel is not very appealing to foreign investors. This is why the second latest nationality of companies on the NASDAQ in New York in terms of market cap are Israeli corporations. Mostly in the high tech sector.

Better place

Then , we went to Better Place which is a company that has a concept of renting batteries on cars in order to splitt the cost of the battery over time. The revolutionary concept is that there are switch stations that allow the user to switch batteries in less than five minutes in order to go on driving. The switch stations charge the batteries over time. Knowing that the full charge of the battery would take about six hours, this is a big time gain and an incentive to buy an electric car because it makes I affordable. The negative poo I have is that the range of the car is only 160 km with full charge which makes it not very practicle to drive long distances. However for countries such as Israel where they will be fully operational in march and danemark, this could really work well.

Cars have a competitive price and government incentive for users to buy them, they are environmentally friendly, the users make an Eco friendly action by buying the car. It is a very good idea In my opinion however the investment cost to beginn is huge and I don’t know how profitable the model is. We will see over time. If more than just one brand ( Renault fluence) adopts the model, it would give a choice to consumers and increase the sales even more.
The negative point is that the trunk is limited due to the battery in the back and the short range for long distance travel. We got a chance to test drive the cars. It was really interesting to drive drive in complete silence up to 70 miles an hour.
The battle between hybrid and completely electric car has begun. We will see how long it will take for the hybrid cars to be taken over by total electrical ones like better place offers.

We had a late lunch at a Restaurant called liliyot. It was a kosher restaurant run by a social entrepreneur which motto was “People Food Soul”
The concept is that the restaurant train socially difficult teenagers who dropped out of school. There are permanently 15 youth who are training to be chefs and to prepare food.
I found this concept really interesting because of the ludic side. When you eat you know that the food is. Ei g prepared by someone who struggled in life and wants to do better. When you pay for the food you know the profits benefit society in a concrete way.

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