For some investors, identifying a megatrend is easy. All they do is wait for the mainstream media to pick up coverage of it. Then they find a couple of stocks from the news or in the paper.
They might see those stocks return solid double-digit gains. That’s great in the current extreme market.
But these investors are already too late. They’re the ones that tell their friends and family they’re an ‘early investor’. They love to tell anyone their portfolio is ‘killing it’.
You might come across these people. If you do, I hope you’re the investor that listens quietly, laughing to yourself. Laughing because you invested in that megatrend years before this punter.
You might even have the gumption to put this bragger in their place. Tell them about the signs of this megatrend that existed years ago. Explain how serious investors bought the megatrend stocks years ago, not months ago. And how now these megatrend stars are up hundreds maybe thousands of per cent.
Of course, to be real early stage investor you need to know when a megatrend is coming.
That where we step in. Covering stocks and megatrends after they hit the mainstream is easy. The really hard part is identifying these trends years out. And here’s the thing, it’s certainly not an easy task.
But that’s what we do at Revolutionary Tech Investor. We uncover megatrends in revolutionary technologies years before they happen. And we find stocks (high risk stocks I might add) that can potentially profit from these megatrends, delivering real gains for investors.
It’s not fantasy, its reality
One megatrend we’ve been on about for years now is the connected and self-driving car. Of course, you should know about this technology now. It’s all over the mainstream media. But we identified companies as far back as 2013 that could profit from this megatrend.
One of these stocks is the ‘beating heart’ of the self-driving car. It’s now showing a total return of 307.5%. In total we have seven stocks related to self-driving cars — only one of them is currently showing a paper loss.
There are companies listed in Australia and overseas that are critical to a future of self-driving cars. They are riding this megatrend already. But they will continue to do so for years to come.
Even though this megatrend has already been picked up by the mainstream, it’s still difficult for some investors to believe.
Perhaps the most important thing to realise is self-driving cars are not fantasy. They’re a reality. It is happening now. And on Tuesday we got even more proof about its future.
On Tuesday the US National Highway Traffic Safety Administration (NHTSA) released new federal policy. Its focus is on the future of self-driving cars.
In the introductory message, US Secretary of Transport, Anthony Foxx states, ‘…self-driving cars have become the archetype of our future transportation.’
The policy itself is 116 pages long. And for the most part it’s boring.
The policy is a guide for self-driving car makers. It outlines how the government expects self-driving cars to perform.
It states they need to be safe. It explains they must abide by the rules and regulations. It suggests how the states can work together on a federal plan.
However, you need to read between the lines a little. In doing so you can see what this policy is really about. The government wants to have control. Control of the system. Control of the data flow. Control of information.
Self-driving cars will transmit huge amounts of data. Every sensor will collect, analyse and transmit data millions of times per second. This data is critical to the whole system working.
As the NHTSA points out,
‘While a human driver may repeat the same mistakes as millions before them, an [highly automated vehicle (HAV)] can benefit from the data and experience drawn from thousands of other vehicles on the road. [The US Department of Transport] is also encouraged about the potential for HAV systems to use other complementary sensor technologies such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) capabilities to improve system performance.’
I’d suggest that V2V and V2I is more important than other safety features. For example, more important than an airbag. That might sound unsafe. But if a car knows about a potential accident before it ever happens, then there’s no need for an airbag. There is no accident.
This V2V and V2I data is incredibly useful for government. They can track people. They can analyse how we move. They can profile and predict what we’ll do and where we’ll go.
In a sense, as liberating as self-driving cars will be, they could also be the ultimate ‘Big Brother’ technology. If the government can get their claws in early, they can keep control of what comes in the future.
But that’s a whole different discussion. The point today is self-driving cars are coming. That means opportunity for investment.
The NHTSA policy document says,
‘The development of advanced automated vehicle safety technologies, including fully self-driving cars, may prove to be the greatest personal transportation revolution since the popularization of the personal automobile nearly a century ago.’
All this tells us we will live in a world of self-driving cars. There’s no ‘ifs’ about it. And they’re coming soon.
But it’s only when you delve deeper into the technology of self-driving cars that it becomes obvious just how much they will change the world.
The most influential technology in history
It’s almost too late now to get on board this megatrend…almost. It has already breached the mainstream consciousness. There are already companies up hundreds of per cent thanks to this megatrend.
But there are also still opportunities. The advantage for investors who can see the inevitable is that the average person in the street still doesn’t believe.
They don’t think the self-driving car revolution is going to take off. They still think in 10 years they’ll be driving their own car down to the shops or on that family holiday.
I’m here to tell you they’re wrong. They’re the ‘horse and cart’ thinkers of this world. Blind to the bleeding obvious. Self-driving cars are coming. They’re coming in just the next few years, and they’re going to be the most influential technology in the history of mankind.
It’s a big call to make. But I believe self-driving cars will change everything. The impact they will have on the world may be more important than perhaps the internet.
You can see today the multi-billion dollar companies that exist because of the internet.
Now just imagine what a world of self-driving cars will do…
Editor, Money Morning