Quantum Wealth Summary
- What you need to know: Autonomous vehicles, potentially aided by AI, could revolutionise our roads and create new high-growth opportunity. We need to look beyond the NZX to report on listed companies leading this new industry.
- Why it matters: Transportation is an investment sector ripe for disruption. Road injury is a leading cause of death worldwide. Millions have difficulty driving. In the US, trucking accounts for 65% of goods movements.
- Here’s the state of play: Autonomous driving technology has been proven but is not widely accepted by regulators. Further, it has only been adopted in limited applications by mainstream automakers. The future opportunity for self-drive is exciting.
If you’re in a ‘growth’ or ‘aggressive’ managed fund, you’ll likely have experienced some mean volatility over the past few years.
I know one investor who lost a million dollars on paper, investing in tech stocks. And these tech positions were also embraced by growth funds.
Many tech companies are software and internet businesses.
You can’t see or touch the service they produce. It’s online. In the cloud. Or provided by a website, app, or software on your computer.
I’m more of an old-school investor. I like to see assets on a balance sheet that can be valued with some degree of confidence. That’s my margin of safety.
By definition, this skews the portfolios I manage toward real estate, materials, and industrials. These have provided great defensive qualities over the past few years. Along with strong dividend income.
But I’m also conscious that you may need a few more speculative ‘kickers’ in a smaller part of your portfolio allocation to drive growth. Particularly for larger portfolios where there is some appetite for more risk.
Can software further mankind’s development?
We could be at a plateau. But perhaps not when it comes to physical application, particularly with the addition of AI.
There are areas where new, tangible, and innovative technology could revolutionise the world:
- Biotechnology that can prevent and treat cancers.
- Transport mobility with autonomous driving improving road safety.
- Transport mobility in the form of electric urban aircraft.
- Cleaner, lower-cost energy production and distribution.
- Artificial intelligence, where it can be applied — for example, to self-drive cars and trucks.
- Real estate positioned for coming social change.
I want to take a closer look at transport mobility and autonomous driving.
In particular, reporting on one exciting business that could drive future change…
Your first Quantum Wealth Report is waiting for you:
covering 13 NZX stocks, plus 1 global opportunity.
