With the 2020s just 15 months away, now is a great time to take a step back and think about the long-term. 10 years ago, the top 10 companies in the world were dominated by energy companies, and Chinese companies. Today, seven of the top 10 companies are technology companies.
“When you’re thinking 10 years out, there’s a lot going on in the world. You have to keep your eyes to the ground, you have to meet companies in the ecosystem, you have to be on top of the value-chain to understand where the disruption is coming from.”
Areas of opportunity:
- Pharmaceuticals – with an ageing demographic, the are huge opportunities in personalised medicine.
- New energy – battery technology and the raw materials to supply it, and even new energy sources
- Existing tech companies – these companies are likely to still be around, though in a different form. Both Google (Waymo) and Amazon (AWS) could be split up into multiple companies.
Watch the full video to hear Amit Lodha, Portfolio Manager at the Fidelity Global Equities Fund, explain which major tech company may not be around in 10 years’ time.
Unusual and refreshing viewing; commentators seldom seem to give consideration to the outlook over such long time frames. I think the key question for Australian investors looking ten years ahead is whether or not the 2020s will bring another commodity boom, as this question will underlie the future performance of every other asset class.