Most business trends are based on two important ideas: All things end and Innovation takes place nonstop
When you notice a trend, you do so for several reasons: It might indicate what stocks to buy. It might indicate what businesses to start. And for every one trend there are many different businesses you can start. If it’s a negative trend, it might suggest how you can position your family to survive. It gives you something to talk about with your friends. It gives you ideas that may morph into revenue streams that nobody has ever thought of before.
Most of the trends I’ll discuss are based on two important ideas: All things end, and the better we prepare for that end, the more our legacies will just be beginning. Innovation takes place nonstop. Humans didn’t innovate for 2 million years, and then suddenly, with the arrival of the printing press, we began to innovate at faster and faster rates. Every year the level of innovation is higher than that of the year before.
So despite my general reservations about stock investing, I invest in companies that diagnose cancer. I invest in companies that I think can diagnose Alzheimer’s. I don’t like to invest in the cures but I like to invest in the diagnostics. I stay away from the cures because the FDA charges you $2 billion to test your cure and then they still might reject you, which doesn’t seem very fair.
There are many opportunities in the tech workforce space, including: Buying up stocks of employment firms that are getting more and more technologically savvy about helping to place employees, deal with healthcare issues, etc. Getting involved in companies that are being used to rehire the new temp workforce in ways they’ve never been hired before.
Trend Example: Chemistry
Alcoa has made aluminum the same way since the late 19th century. Their profits are razor thin because everyone knows the aluminum manufacturing process and anyone can supply the appropriate chemicals and metals at just the right price.
However, this is going to change and someone is going to find a new way to make aluminum. They might discover new elements to use and new processes to smelt. Companies that hoard those elements or develop those new processes will benefit in a big way. Chemistry is going to be much more influential in the coming ten to twenty years than information technology.
Keep track of the changes in how people are innovating in chemistry and suddenly you will see what’s happening in alternative energy, battery storage, isolation of valuable chemical isotopes (like pure oxygen, for instance), etc. How do you make money on this? Read about it, keep an eye on the companies and markets involved, and you will see the right moment to place your bets. Just like the biotech markets, the chemistry space is difficult to value but the markets are huge, even in the trillions.
The Choose Yourself Guide To Wealth
“We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.
— Charles T. Munger”
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Disclosure of Material Connection:
Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”