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Investing in the New Age

Tribe's Weekly
Tribe's Weekly
We don’t work the way our parents did, behave the way they did, or even make choices the way people used to. Then why invest in the same companies as they did? Is the false view of being safe and sticking to evergreen stocks stopping you from investing in future multi baggers?
Though the past teaches us lessons to better ourselves, we have to realize that investing is forward looking. The world doesn’t work they way it did 50 years ago, and markets aren’t the same either. It’s crucial to understand that people change their lifestyle, companies change their products and new industries are formed as technological developments take place.
Here are 3 upcoming industries that look quite promising!
Electric Vehicles
If you don’t know what that is yet, an electric car is a car powered by an electric motor rather than a gasoline engine. They function by plugging them into a charge point and taking electricity from the grid. These storable and rechargeable batteries then power an electric motor, which turns the wheels.
Tesla started it one may say, but the innovation & adaptation to this superior machine is such that more than 600 models are expected to be developed, and almost all auto makers adopting this are viewed as a multi bagger stocks.
The hype is real. Don’t believe us, look at the stats:
Source: Statista
Source: Statista
Why though? Well, there are many reasons. The most prominent feature is efficiency. EVs promise efficiency, more speed in less energy utilization. Powered by batteries, these are expected to reduce our dependence on oil producing countries. And since renewable sources gather popularity, our dependence on fossil fuels is also expected to deplete. More so, these high tech cars are capable of many more software integrations than regular cars, some even suggesting self driving!
Investment opportunities lie in:
  1. Auto makers: Tesla, Nissan and BMW are already in the game, with Tesla leading from the front. In India, Tata Motors has already started producing EVs and sources reveal they have plans to make India a massive EV manufacturing hub! Along with Tata Elxsi developing software for such cars too, they look like an EV ecosystem leader in the making.
  2. Battery makers: Since batteries are the main components of such vehicles, Amara Raja Batteries and Exide batteries would shine in India. However, it’s possible that car makers make their own batteries in order to differentiate.
Green energy / environmental theme
Climate change is real. Fossil fuels were the old way of producing energy. Though most of the third world still heavily relies on it, developed and developing countries are readily switching to renewable sources of energy for the better. A healthier planet, reduced long term costs, enhanced efficiency and adoption of corporate governance are some of the many reasons advocating the use of green energy in conducting many industrial activities.
Modern citizens are more aware of their responsibilities in protecting the planet and make purchases that support their belief. Companies are also producing more eco friendly products in the wake of changing customer preferences. Energy is needed by almost every industry that produces a physical product and green energy adoption can be revolutionary. Also, it has opened the gates to newer industries like waste management.
An environmental integration into your investment portfolio would be a practical way to gain exposure to this industry instead of selecting certain stocks. Some practices you can consider adopting are:
Meta verse
Metaverse is defined as a virtual world, a place that exists only on the internet. It is close to a simulation of the real world facilitated by use of augmented reality headsets. Mega tech companies like Facebook and Microsoft seek to build these ‘planets’ or metaverses of their own. Existing virtual worlds like Sandbox, Axie Infinity and Decentraland are places on the internet where you can trade non-fungible tokens and other digital assets.
One can live, play games, buy stuff and build social connections in this world. People are mainly expected to derive not only value in terms of entertainment, but the utility of trading of digital assets, offering a chance to make real money. This niche technology sector is expected to grow leaps and bounds in the coming years. There exists a chance to attain monetary benefits both inside a metaverse as well as by supporting them form outside.
  • You can buy/sell digital assets that trade on marketplaces within this world. These assets are expected to rise in value as the popularity of the ‘internet’ world grows, especially NFTs. Crypto currency is mostly used for such transactions.
  • One can also invest in equity of blockchain or technology startups that are building metaverses or giants like Facebook (now Meta) or Microsoft that are deemed to overtake this space.
Investing in new age industries not only promises financial return, it means that you are allocating capital to its most productive use, i.e. a better future.
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Tribe's Weekly
Tribe's Weekly

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