Let me ask you a question, what is Australia going to look like in 20 years time?
Infinite growth economies to morph into circular economies: You have a problem, grab a pen and note down these 2 videos, they are a must watch:
Intelligence is refreshing right?!
These insights shape my stock selection in the following ways, because:
- The recent past is no longer a basis for predicting the future
- Four forces are changing the financial climate: digital, shifts in speed of economic power,
- Globalisation and demographic change.
The new circular economies emphasize sharing and providing services, rather than ever growing consumption.
So which CEO’s are steering their company with eyes open?
Take Health as an industry sector, Elizabeth Holmes is one example of a CEO defining how successful business of the future will work.
Right now you can walk into a Walgreen pharmacy (there are over 8000 across the USA), give a finger pricked drop of blood (not a needle and test tube) and 4 hours later the results are sent to an app on your phone. You can have up to 70 tests done on that single drop, read the full menu click here. See the costs of each test, and click on the test to see why you might want it. People are getting the tests regularly to see how their eating habits are affecting their insides day to day. Imagine how this will affect disease prevention. Currently in Australia you have to see your GP, give a test tube worth of blood, one per test, wait 2 days, then return to your GP as only they can read your report to you.
Next, consider the energy sector. Elon Musk is helping people get off the grid with the new Powerwall, the Tesla home battery, click here to view. So far reservations for this new product stand at $US800 million, and they haven’t even started shipping them yet. The 5 million square foot battery factory is not large enough to meet demand. How Australians go off the grid with such devices is another article in itself, the point is, the new circular economies are not gearing up to consume more, but to consume smarter and in entirely new ways of thinking.
Click here to make a time to talk to Greg Adams directly. Greg is an analyst with a focus on equities, indices, futures and forex.