Electricity is fundamental to the way we live our lives. You simply can't live without it. Just consider the disastrous effect of load shedding this past week.
Roads in chaos, stockpiles of food rotting in refrigerators and many downstream services just grinding to a halt.
And yet, if you look at the big picture… And, I'm talking the development of mankind “big picture”, we've only had access to electricity for a very short period in human history.
Electricity was first introduced to homes in 1882, when Thomas Edison brought electric light to parts of Manhattan. Yet, the uptake was slow. Most Americans still lit their homes with gas and candles for another 50 years. It took a significant amount of time before the full possibility of wide-spread electrification was realised.
The same thing is happening with the Internet today.
What was once just a jumble of hyperlinked text has now become so crucial to modern living, I would argue we would face total social collapse if one day the Internet just “turned off”.
Don't believe me?
Let me ask you a few questions…
When was the last time you walked into a travel agency? Or rented a movie from a video store? Or even bought a newspaper at your local supermarket?
I bet it was a while ago.
You work on it. Get your news from it. You stream shows, watch sport and play games on the Internet, all while sharing your whole life via social media.
Right now, the Internet and the Fourth Industrial Revolution (4IR) are fundamentally changing the way the world works. But, even now the full ramifications of widespread internet access are only just beginning to be felt.
The very next SMS you receive could make you R1,914!
550 people ALREADY have my number in their address book - and since I started SMSing them, they've made thousands in profit in the last few weeks alone.
Now it's YOUR turn to see how much you could make!
Best of all, you don't need ANY previous experience, hard work or special equipment aside from a stick-standard cell phone.
So, how can you make sure to profit from this ongoing revolution?
Well, it’s important to make sure the companies you invest in are able to harness the potential profits which appear as the landscape shifts.
Just as you’ve adjusted to new technology in your personal life, you need to adjust your investments. You need to make sure your portfolio is geared towards this changing world.
Historically, companies have had only two choices in a changing business environment: Adapt or die.
It used to be a listed company. At its peak in around 2004 it employed 84,300 people across 9,094 stores world-wide.
But then the technology changed, and a small mail-order service called Netflix was born.
Blockbusters filed for bankruptcy in 2010.
They failed to adjust.
So, what kind of companies should you keep an eye on?
Personally, I like to stick to what I know. And, I know how the Internet works. The Internet needs hardware. It needs fibre optic cables, servers, routers and devices that can use it.
One way to profit from the internet revolution is to forget about picking the next “big thing”. The chances of you identifying the next breakout piece of technology is probably quite low.
Instead, focus on businesses which are essential to the ongoing sustainability of the tech sector.
In other words, don’t be the guy digging for gold, be the one who sells shovels and gold pans to the miners.
Is this the secret to becoming a stock market millionaire?
You don’t get taught it at school.
And you’ll hear shockingly little about it in the press, or on the evening news.
But right now, a tried and tested wealth building secret is helping make investors a fortune.
How about some specifics?
If you’re limiting yourself to the South African environment, crippled by a lack of new listings, drowning in a sea of average and hamstrung by stage six load shedding… well you’re going to struggle.
But, if you expand your horizon, and look at the universe of offshore companies… things suddenly get very exciting. This is where you can access companies like Apple and Samsung, which make the devices people use to interact with the web.
You could consider investing in companies like Intel and AMD who make the chips which run the servers that are the backbone of today’s internet. Or, you might even consider buying into a manufacturer of fibre optic cables like Corning Inc.
But, to invest in these companies, you’ll need to make sure you have an offshore account which gives you access to the New York Stock Exchange, NASDAQ, London Stock Exchange at the very least.
Also, when selecting an international provider, make sure you pick a firm that can also manage the unique requirements of South African citizens.
Of course, if you’d like me to help get you started offshore, you can contact me directly on firstname.lastname@example.org
Rand Swiss, Wealth Manager