This week I have had the opportunity to spend some time in Southern California and man it has been an eye opener. Technology and the use of it is so mainstream and so far ahead that it really shines a light on several investment themes – themes that we have been using to bank profits and themes that will continue to play out in the year or two ahead.
Whether you profit from them or not is up to you, but at least you can’t say “I wish I’d known about that”. I know one thing for sure, I will be banking profits from this weeks research.
A three minute chapter of activity would sum it up. I was in Starbucks (not for me, for my wife, as I drink coffee) and the lady in front of me ordered her drink, paid for it and acquired all of her loyalty points on the mobile app conveniently operated from her iPhone.
Amazingly 11% of Starbucks sales are now conducted in this way more than any other single retailer – more than 4m transactions a week, I have subsequently researched.
The start of the future…
Leaving the “coffee” store I couldn’t help but notice the lady had hopped into her Tesla car and was silently cruising out of the Carpark. These are stealthy machines – in fact the only sound I could hear as she whipped past was her laughing on the telephone.
I dropped by the Tesla showroom the other day at Century City – suffice to say business is great and they are literally flying off the production line with almost as much gusto as the zero to 100 in just 4.2 secs! Add to that your right to drive in the car pool lanes and you are laughing and actually stand a chance of testing the performance in the heavy LA traffic! Given the attractive price of electricity and solar power, the cost of running the two tonne beast is practically zero.
Speaking of test drives, a stop by for the obligatory visit to Apple gave me a chance to check out the new Apple watch. Looks great and even if you don’t want one, you’ll probably get one anyway, as the functionality, including the Starbucks app, is off the charts! Not my cup of tea, no pun intended, but at least being battery powered it won’t take up a valuable slot in my watch winding safe! I am currently holding Apple in my portfolio and look set to close out on expiry for a tidy profit. Tesla has been missing for a while in terms of my holdings but could be making a re-appearance so watch this space.
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