There’s no longer any doubt about the future. There’s no uncertainty about it. There’s only one outcome. And that means you need to open your eyes to what’s coming.
As an investor you would be crazy to not have some exposure to this industry.
Last year in October at our conference ‘The Great Repression’ I took a positive spin on things. I told the audience that while governments can be repressive, there’s not actually as much to fear as you might think. We were in sunny Port Douglas, so repression was hard to find up there. But my argument is that we live in a wonderful world of opportunity.
In fact, there’s so much to look forward to that you should be excited about this year. And next year. And the year after — you should be incredibly excited about our future.
I also said that as investors I think you’re certifiably insane if you don’t have some kind of exposure to technology stocks. But I’m going to be even more specific today. Today I’ll tell you about one tech mega-trend I think you absolutely MUST have exposure to.
It’s easy to be an optimist when you see what I see
Last Monday I boarded a flight from London Gatwick to McCarran airport in Las Vegas. Before I jumped on the flight I gave my wife a quick call. She mentioned that she’d been watching the news, and it had made her sad because of all the bad things happening.
I told her to stop watching the news all week, and I would turn that feeling into pure excitement. I told her that all the amazing technologies I was going to see at CES® this week would make her happy, excited and upbeat about our future.
I achieved this by sending her pictures and info about the things I would see at CES®. By the way, if you also want to keep up to date with everything I see and hear at CES® then follow me on Twitter for all the live action.
By the time of writing, I’m pretty sure I’ve helped change her view on things. Even though the CES® show has still a few more days to run, there’s already a lot to get excited about.
That includes the Sesame Street backed Elmo robot that pairs with an app to help kids learn coding and robotics. It includes the latest in artificial intelligence (AI) to help companies connect people and make our world ‘smarter’.
It includes the latest in visual technology, from virtual reality, augmented reality and mixed reality, to 8K TVs and quantum dot tech.
But perhaps most significantly it includes the inevitable progression to fully autonomous vehicles. That means self-driving cars.
On Wednesday at the Toyota Motor Corp [TYO:7203] press conference they unveiled ‘Concept-I’. This is Toyota’s concept for self-driving technology and artificial intelligence that creates a ‘relationship’ between car and driver.
Toyota made the point that it’s no longer a question about when this technology will come. Every car maker in the world is developing self-driving car tech. The bigger question at hand is what is the relationship we’ll have with our car? How will our car become our most personalised robot?
Toyota did also make the point that what they call ‘Level 5’, the fullest level of automation, might still be a while off. But they were convinced that self-driving cars are coming.
I also heard presentations from Continental AG [ETR:CON], Bosch GmbH, Hyundai Motor Co [KRX:5380] and NVIDIA [NASDAQ:NVDA]. Every one of them working on self-driving car tech. NVIDIA announced a partnership with Audi AG to get a fully autonomous Audi on the road by 2020.
In fact, they’re showing it off right now in the Gold Lot at the Las Vegas Convention Centre. There’s an Audi Q7 full of NVIDIA’s latest AI for self-driving cars. It’s doing demos and driving itself around a complex track. NVIDIA also made the point that the car had only gone through four days of ‘teaching’. That’s all it needed to learn how to drive.
This is just one example though. As mentioned, Toyota has this kind of tech. Hyundai is also demonstrating their self-driving tech. BMW, Audi, and Mercedes are all demonstrating self-driving tech.
Make no mistake, self-driving cars are coming to the world. There are no ifs or buts about it. It’s not often you can be certain about future technology. But this is an exception. It’s already been a good decade in the making. And the last three years has seen the megatrend accelerate.
The moment when you forget your beliefs
We now have the advanced computing, the AI, the connectivity that makes self-driving cars a reality — a certainty. This is as big a fundamental shift in society as the transition from having no cars to a world full of them in the early parts of the 20th century.
It is set to change everything. Public transport, ride sharing, retail, healthcare, insurance and of course the car industry. I can’t think of a single industry that self-driving car tech won’t have an impact on.
That’s why it’s, in my view, the single biggest opportunity that exists for investors right now. If you don’t have exposure to the right stocks involved in self-driving car tech then you may as well give away the investing game.
When opportunity is there slapping you in the face, you should take notice of it. This is happening. I can’t be clearer about it.
Your personal beliefs and perceptions might disagree. After all, you might be one of those people who thinks, ‘Why would I want a self-driving car, I like driving?’ But this is one of those moments Greg and I wrote about this week, when you need to forget your beliefs and perceptions.
Look at what’s happening and act. Self-driving cars are coming. That means take action, invest in the right companies, and grab this opportunity with both hands.