As E.C. Mackenzie wisely said, “The actions of men are the best interpreters of their thoughts.” Our actions—especially when it comes to investing—are a direct reflection of how we see the world and the future.
In today’s fast-evolving world, technology is reshaping industries, creating incredible opportunities for investors.
Centuries ago when mapmakers would sketch dragons at the edge of their scrolls to signal uncharted territory, it was a warning: explore here at your own risk. Many explorers saw those dragons as prophecies of disaster, turning back before they could discover new lands. They let fear of the unknown hold them back.
But there were others—more daring adventurers and explorers—who saw those dragons as symbols of opportunity. They ventured forward, opening doors to new worlds and incredible possibilities.
As investors today, we must adopt the same adventurous mindset. In the same way that those explorers faced the unknown, we stand on the brink of a new frontier: digital transformation.
The question is, will you view this wave of innovation with fear or will you see the opportunity?
Take the Industrial Revolution for example. It was a time of immense change, where breakthroughs like water power and textiles gave rise to the first cotton mills.
Then came steam power, revolutionising transportation with railways, reshaping cities, and boosting trade.
The invention of electricity allowed visionaries like Henry Ford to change the world forever, introducing the Model T and the assembly line.
With the rise of petrochemicals and electronics, aviation soared, connecting the globe in ways never imagined.
And with digital networks, software, and media, our world is now more connected than ever before.
Imagine this: if you had invested just $1 in 1792 in the New York Stock Exchange, today it would be worth more than $20 million! That’s the power of time, innovation, and smart investing.
But consider this: on July 19, 2024, a simple antivirus software update by Crowdstrike went wrong, causing a global outage that affected 8.5 million Windows users.
People couldn’t work, shop online, or even travel. This incident was a stark reminder of just how deeply we rely on the Internet and how much more dependent we will become in the next decade.
Success in investing isn’t about being right every time. It’s about spotting the next mega-trend—like the seven themes we believe will shape the future.
For some investors, this might not be a comfortable thing to do but in investing most of the attractive opportunities arise in uncomfortable or even frightening places.
For sure, we don’t know exactly how these new technologies will transform society, but one thing is clear: our reliance on them is growing exponentially. We’ve reached a point where life as we know it cannot function without the Internet and digital tools. This is our new reality.
Just like explorers faced the dragons on their maps, we’re at a pivotal moment in history where digital technology is reshaping every aspect of life. Are you ready to invest in this next frontier?
Remember, the safest path is not always the best for us. Avoiding risk means missing the biggest opportunities—like those early investors in Amazon, Constellation Software and Berkshire Hathaway who saw what others didn’t.
Awet Ghirmay, Head of Investment Research
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Risk warnings
The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
