Currently everyone is seeing all of the gains that are happening in the stock market and the number one question that I get is “How do you decide what stocks to invest in?”.
The simple answer is “Research”, but I want to explain to you what type of companies will be the big movers over the next 1 - 5 years and the places where you can stay up to date.
Let’s get into the exciting stuff first, which is the types of companies that I believe will do well over the next 1-5 years. Companies that focus on shaping the future of our society will be the ones that will have a lot of growth. We are at the point where you can think of everything becoming futuristic. Similar to the Jetsons or the 5th Element minus the flying cars lol. When you think about what technology is coming next, what do you think of?
How will cars evolve? How will computers evolve? How will apps evolve? How will health care evolve? How will schooling evolve? How will the workforce evolve? How will video games evolve? How will cell phones evolve?etc.
Three examples that everyone is seeing right now are the shift from gasoline vehicles to electric vehicles, in person learning to virtual learning , human customer service to self service, physical to digital...and many more examples. Basically these are all shifts towards the future economy and future society in general.
Pretty much everything will evolve from the way that we do it today to a new way that is easier, more convenient, faster, digital, autonomous, and artificial intelligent. When looking at companies who will disrupt or evolve industries you want to look at the supply chain, what materials they need to make their product, what software/platforms they use, and what companies they have partnerships with to create their product.
Any company that will disrupt and completely change how an industry operates will become extremely valuable. Uber completely changed transportation, made getting a ride more convenient and is slowly killing off the taxi industry. Airbnb is taking over the hotel industry which allows people to book a couch/room/space or entire house that someone else owns at the click of a button.
Currently we are in the 4th Industrial Revolution which will create many millionaires, billionaires, and even trillionaires. The continued development of artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials science, energy storage, and quantum computing will quickly change the way we live our lives.
So pay close attention to companies that are using this kind of technology to innovate and disrupt industries. Here is a video (watch the first 10 mins) of an insurance company called Lemonade. They are using Artificial Intelligence to innovate and disrupt the insurance industry. Check out their stock price. From $56 to $185 in less than a year, that is almost a 4x return on investment.
Where to do research on stocks and keep up with market trends
- Seeking Alpha
- Finviz
- Yahoo Finance
- TradingView (stock charting)
- MarketWatch
- Follow stock news accounts on twitter (@MarketCurrents, @Stocktwits, @BreakoutStocks,@WSJmarkets, @nytimesbusiness)
Stock investing is a lifetime journey. You will research, make mistakes, make money, and lose money along the way. Over time you will continue to improve, enjoy the journey.
"Reverse engineer your life. Live a life of abundance"
- Beez
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