While many stocks stand strong on their own, there’s no denying that in an ever-changing world, investing in a growing industry is important.
The world is changing faster than ever before. This brings new challenges and, with them, new opportunities for great businesses. New industries are popping up everywhere and a flurry of startup companies are competing for a share in the profits.
A megatrend company is a leader in the industries of tomorrow, whether it be green energy, organic food, or even robotics.
When we say you should buy what you believe in, that includes buying into the world you think is ahead of us.
Good investors should always be forward thinking. Remember, we’re investing with a 5-10 year outlook. What will the world look like in ten years?
Will McDonald’s still be the biggest fast food chain in the world, or will healthier alternatives continue to steal their market share?
Will we be driving more electric cars? Will we even be driving them? Perhaps a computer will take over and let us sit back and relax on the highway.
How will drones affect our lives? Try to imagine the potential for online shopping or even food delivery if a drone can deliver something to your door in 30 minutes.
What companies are going to profit from these social shifts?
This is the kind of thinking you should adopt if you want to prosper as a long term investor.
You’ll find great investing ideas by reading up on the latest technologies, changing consumer trends and the flurry of new services the internet has given birth to.
Be conscious that new technologies often get overhyped in the early stages. Be careful not to throw money at the new “hot stocks” without properly evaluating the business and the market opportunity.
TL;DR
- A rapidly changing world brings new challenges and opportunities to businesses.
- Long-term investors can take advantage of shifting global trends and emerging technologies
- Be careful not to get caught up in overhyped stocks.
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.