Investments of the future: Millennial Industries and buying what the rich and famous enjoy.
March 27, 2019 (Investorideas.com Newswire) Making money is often about being one of the first people on the bandwagon, so to speak. The first Google investor was Andy Bechtolsheim, who wrote a cheque to 'Google Inc' for $100,000 in September 1998. Thanks to this early investment as well as many others, Bechtolsheim is now worth an estimated $7 billion.
Peter Thiel (co-founder of PayPal) was an early investor into the social network - Facebook. In fact, Thiel was the first outside investor into Facebook. In August 2004, Thiel acquired a 10% stake in the company for $500,000. Eight years later, Thiel sold his shares for just over $1 billion.
Although both Thiel and Bechtolsheim are high profile examples of successful early investments, do not be fooled into thinking that this is something that only the already rich are capable of. Any investment where you make money is a good investment. On that note, here are our top industries to invest into for the future.
Anything the rich and famous love
'There are rich consumers, few in number, but disproportionate in the gigantic slice of income and consumption they take.' 'There are the rest, the "non-rich", the multitudinous many, but only accounting for surprisingly small bites of the national pie.' - Plutonomy, Buying Luxury Explaining Global Inbalances
Yachts, super cars, designer handbags, property, art, islands, expensive watches - the list goes on and on. Due to the ever-increasing wealth gap between the rich and poor, now is a better time than ever to invest in the things that rich people are accustomed to buying.
Whilst working for Citigoup as director of Global Strategy research, Ajay Kapur co-wrote a report which had a simple message: the rich are getting richer, and that can make you rich.
Kapur recommends investing in things that are recession proof. Whereas the everyday consumer is often hit by things such as a rise in oil prices; rising oil prices means the consumer must pay more to travel to work each day which will impact on their spending on goods such as going to the cinema and buying popcorn. However, the super-rich are not affected by a rise in oil prices because the proportion of there income that they spend on travel is very low. If you're usual purchases are Rolex watches, luxury yachts and Lamborghinis, then changes to the oil price do not matter.
Journalist Oliver Bullough wrote in his fantastic book 'MoneyLand' that: "If you look at just financial assets, and exclude housing from the calculation, the top million households hold more of the sum total of American wealth than the bottom 95 million household put together. This is a new phenomenon, and one with lucrative possibilities for a canny investor."
Essentially, it is possible for a smart investor to research and invest in companies that produce products favoured by the ultra-rich and wealthy. Although from a moral standpoint you are profiting from inequality, from a personal financial point of view, investing in companies that sell goods bought by the super-wealthy should be both a good short-term and long-term investment.
The iGaming Industry
"The iGaming market is growing at astonishing rates around the world. New technology means that the consumers are being satisfied now more than ever." - iGamingBusiness
The iGaming industry is one of the most popular gaming industries in the world. Like it or not, the gambling sector is worth billions of dollars world wide and thanks, in part, to the evolution of technology, the sector is growing at a massive rate.
Online gambling has been given a huge boost by 21st century technology. Online poker as well as online blackjack and online slots games have never looked better and thanks to the internet, players can play against casinos and against each other from across the world. Currently, the hub of the iGaming world is in Malta and it has been for the past few years now.
Truth-be-told, the iGaming sector is very fickle. The iGaming companies are only in Malta due to favourable tax regulations, as soon as these regulations become less favourable the companies will go to a different country. However, the growth in the sector is vertical.
The iGaming sector comprises of online casinos, online sportsbooks, bingo as well as poker. According to Gambling Insider, the industry was worth $47bn by the end of 2016 and is set to hit $80bn by the end of 2020. Online gambling has never been more popular than it is now, and this could be only the beginning. Furthermore, if the USA deregulated this sector than the industry could double in revenue over night.
"Veganism will be the most popular topic of the new year. 2019 is the year veganism goes mainstream." - The Economist
The vegan market is certainly the market of the future to enter now. It is easy to think you have missed the boat on investing into the vegan industry given that veganism is one of the most talked about things in 2019. But in my opinion, the ceiling is so high when it comes to the veganism industry, that there is still plenty of room for investment in this industry.
An ever-increasing number of people are switching to a plant-based diet both for health reasons as well as for animal welfare reasons. More and more vegan restaurants and cafes are opening in some of the largest and most populous cities in the world. Some dairy and meat farmers are accepting that the future is starting to look vegan and are switching farming practices and their lives to match a vegan future.
Investing in vegan companies is also a great way to support the industry. If you are a vegan yourself then this is another way that you can help vegan companies to grow. Show confidence in them now and there's no reason why it won't reward you in the future.
Eco friendly products
"Governments in 2019 are declaring war on single-use plastics." - The Journal
Global warming and the damage human's have done and continue to do to the world is never far away from one's hearing. Fortunately, for the planets sake at least, regular people as well as some industries have begun to stay away from earth polluting products such as one-use plastics and are looking to eco-friendly products. Super markets, especially, are catching on to what their consumers want, and that is to replace, where possible, regular packaging with more eco friendly packaging.
The world's first plastic free supermarket recently opened in the Netherlands - this shows that it is possible for supermarkets and indeed other industries to operate whilst also being friendly to the environment. The media, especially in the UK, have been keen to point out how so many industries continue to be reliant on one-use plastic products - consumers take notice of this and the future will ensure that industries that become fully eco friendly will be favoured by consumers.
Gaming technology and esports
"The global esports market will exceed $1billion in 2019." - Newzoo
Video gaming is one of the biggest and most profitable within the entertainment industry. Video gaming is a hobby and pastime for hundreds of million of people around the world and recently, has also entered the world of sports. Competitive video gaming aka esports, has taken the video game industry up another level. Video gaming is no longer for solely seen as a nerdy thing to do, video gaming is now a passion of a new generation of children growing up in a super high-tech world.
It is for this reason why I would suggest investing in companies that are looking to advance video gaming. Video game development company Valve are continuously pushing the limits. Valve have a database - Steam - which lsits literally thousands upon thousands of video games online which you can buy at the touch of a button. Furthermore, Valve behind a lot of the super popular esports video games such as Dota 2. It is these games which are growing in prominence. The biggest esports tournament in the world - The International - last year had a prize pool of over $20 million. Tens of million of people watched this tournament online and the numbers are growing year after year.
As technology advances, so do video games. Video games are here to stay and esports are still relatively new. Get on the esports bandwagon before it leaves without you.
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