FEAR & GREED | Business News WiseTech’s governance test
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Jan 7, 2026 Gaurav Sodhi, Deputy Head of Research at Intelligent Investor, dives into the complexities surrounding WiseTech Global, a top Australian tech company. He discusses unsettling governance issues and allegations against founder Richard White, revealing how aggressive accounting practices may mislead investors. Gaurav emphasizes the importance of strong independent board leadership to address these concerns. He also highlights CargoWise’s exceptional product strengths and suggests governance improvements akin to those at MinRes to enhance WiseTech’s credibility.
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Great Product, Serious Governance Risk
- WiseTech combines world-class software with governance problems that worry investors.
- Aggressive accounting and founder control create material downside despite product strength.
Margin Expansion Driven By Accounting
- WiseTech has increasingly capitalised development costs, inflating reported margins.
- About 80% of margin expansion came from this accounting choice rather than underlying performance.
Be Cautious Before Buying The Dip
- Exercise caution before buying WiseTech even after share price falls.
- Wait until governance (board/chair) and accounting clarity improve before committing capital.