Chch Investor Meetup — August 25, 2018
What do you think about during market all time highs? In a world full of promises, challenges faced by the friction of traditional nations, this week, some of us pondered about the next thing in such market conditions.
Having seen the buoyant markets resulting from tax cuts, despite the trade war tiffs and flamboyant sensations amongst news (thanks to Nassim Taleb’s advice to not read news, it’s been easy to sidestep the chaos that public sentiments churn), we took another view this week amidst new comers to the meetup.
The world economy today is essentially a direct result of more than 2.5 billion active participants, using the number of smartphones as a proxy for active participation. In the next two decades, we’ll see the remaining 5 billion people get online. This shift, is enormous, due to the rising wealth for this pool as they get on stream.
The investment hypothesis then, is to ponder on the impact on returns when this next pool of folks emerge online. Discover the best companies in industries that will benefit as such as shift gains momentum.
When the world is bringing up the next 2.5 billion people online, their ability to earn will be increasing 100X from $100 to $10,000.
We ran a thought experiment on some of the attendees, what would you start spending on if your net wealth grew 100X today? What would be the immediate things that you would secure?
Companies with highly scalable solutions are going to tremendously gain as this new community expands. We took a quick look at Facebook in 2018
FB Messenger: 1.3 billion users monthly
WhatsApp: 1 billion users daily
Instagram: 1 billion users
Facebook: 2.19 billion active monthly users
In the next decade, start getting comfortable with companies reaching out to 3–5 billion users. How would you position your investment strategy then?
