This post was inspired by @Jake_Pahors post on Twitter which led me down a rabbit hole of thinking about what the world might look like in 10 years time and what investment opportunities might arise from these changes.
The first step was to get ChatGPT to check what I was missing using the following prompt.
Here is a list of expected changes we will see over the next decade, brainstorm a larger list of additional changes we are likely to see
- …
This came back with a big list which I then compiled in to a final list and organised in to categories of changes that might happen in the next decade.
- Rural > cities migration
- Manufacturing > service industries
- Full time > part time & gig economy
- Solopreneurship & influencers
- Global teams & remote work
- Increase in climate disasters
- Potential water/food scarcity
- Biotech/longevity breakthroughs
- Personal health tech & monitoring
- Online healthcare and appointments
- Improved mental health awareness
- Decline in birth rates & population
- Aging population
- AI disrupting all industries
- Personal assistants and robotics
- Automated vehicles > taxi/lorry driver unemployment
- Electric vehicles replace ICE
- Battery & energy storage innovation
- Online educational tools, Teaching as a service
- Virtual reality (VR) and augmented reality (AR)
- Web3 decentralized user owned data
- Monetary expansion and global debt crises
- Increasing wealth gap
- Chinese political power & BRICS
- Mars project & space tourism
- Cybersecurity warfare
- Drones/bots/AI weapons
- Next-gen nuclear energy
Now let’s ask chatGPT to explore investment opportunities based on these changes.
Explore investment opportunities based on these expected changes over the next 10 years
Response: “Based on the expected changes over the next decade, there are several key areas with promising investment opportunities. Here’s a detailed exploration:
Urbanization and Service Industry Growth
Real Estate and Infrastructure
- Urban Development: Investment in housing, transportation, and infrastructure projects in urban areas to accommodate the influx of people from rural areas.
- Smart Cities: Technologies and companies involved in developing smart city solutions, including IoT, smart grids, and urban planning software.
Service Industry
- Professional Services: Firms offering consulting, IT, and other professional services are likely to see growth as economies shift from manufacturing to service oriented.
- Gig Economy Platforms: Investment in platforms that facilitate freelance, part-time, and gig work, such as Upwork, Fiverr, and other industry specific marketplaces.
Climate Resilience and Sustainability
Renewable Energy and Storage
- Solar and Wind Power: Companies involved in the production and installation of solar panels and wind turbines.
- Battery Technology: Innovations in battery storage solutions to support renewable energy.
Water and Food Security
- Water Purification and Management: Technologies for desalination, water purification, and efficient water management.
- AgriTech: Investments in agricultural technologies that improve yield, reduce water usage, and enhance food security, including vertical farming and hydroponics.
Healthcare and Biotech
Biotechnology
- Longevity Research: Companies working on anti-aging and longevity solutions.
- Genetic Engineering: Firms involved in CRISPR and other gene-editing technologies.
Digital Health
- Telemedicine: Platforms offering online healthcare services and virtual appointments.
- Health Monitoring Devices: Wearable tech for continuous health monitoring.
Mental Health
- Apps and Services: Digital platforms providing mental health support and services.
Aging Population
Senior Care
- Assisted Living: Facilities and services catering to the elderly.
- Home Healthcare: Companies providing in-home medical care and support services.
AI and Automation
Artificial Intelligence
- AI Development: Firms specializing in AI technologies, machine learning, and data analytics.
- Personal Assistants and Robotics: Companies developing AI-driven personal assistants and home robots.
Autonomous Vehicles
- Self-Driving Technology: Investment in companies working on autonomous vehicle technology and infrastructure.
- Electric Vehicles (EVs): Firms involved in the production of EVs and related infrastructure.
Education Technology
- Online Learning Platforms: Investment in online education providers and edtech solutions.
- VR/AR Education: Companies creating VR and AR tools for immersive learning experiences.
Financial Markets and Geopolitics
Safe Haven Assets
- Gold and Precious Metals: Investing in gold and other precious metals as a hedge against economic instability.
- Cryptocurrencies: Digital currencies as an alternative investment.
Emerging Markets
- BRICS and Chinese Investments: Opportunities in emerging markets, particularly within BRICS nations.
Space Exploration and Defense
Space Tourism and Exploration
- Space Companies: Firms involved in space tourism, satellite technology, and Mars exploration projects.
Cybersecurity
- Defense Technology: Investment in cybersecurity firms and companies developing next-gen defense technologies, including AI-driven defense systems and drones.
Societal Shifts
Web3 and Decentralization
- Blockchain Technologies: Companies developing decentralized applications and blockchain infrastructure.
Consumer Goods for Solopreneurs and Influencers
- Content Creation Tools: Platforms and tools designed for content creators and influencers.
We can take this further by asking:
List 10 public companies that are currently well positioned to take advantage of these changes and your reasoning for why they can flourish in this evolving environment
I’ve listed the response alongside the current share prices for future reference, at time of writing the SP500 is trading at $5,633.
Here are 10 public companies well positioned to take advantage of the expected changes over the next decade, along with the reasons for their potential success:
Tesla, Inc. (TSLA)
- Share Price: $252.94
- Positioning: Leader in electric vehicles (EVs) and energy storage solutions.
- Why: Tesla’s advancements in battery technology and autonomous driving position it at the forefront of the shift towards sustainable transportation and renewable energy.
NVIDIA Corporation (NVDA)
- Share Price: $452.98
- Positioning: Key player in AI, machine learning, and graphics processing units (GPUs).
- Why: NVIDIA’s technology is essential for AI development, autonomous vehicles, and high-performance computing, making it central to many future industries.
Alphabet Inc. (GOOGL)
- Share Price: $2,396.76
- Positioning: Diversified tech giant with interests in AI, autonomous driving (Waymo), and healthcare (Verily).
- Why: Alphabet’s broad portfolio in cutting-edge technologies and data analytics positions it to benefit from AI, digital health, and smart city developments.
Amazon.com, Inc. (AMZN)
- Share Price: $3,241.40
- Positioning: E-commerce leader with strong cloud computing (AWS) and AI capabilities.
- Why: Amazon’s dominance in e-commerce, cloud services, and logistics makes it a key player in the gig economy, online services, and AI-driven innovation.
Microsoft Corporation (MSFT)
- Share Price: $342.50
- Positioning: Leader in cloud computing, AI, and enterprise solutions.
- Why: Microsoft’s Azure cloud platform and AI services support global teams, remote work, and digital transformation across industries.
Johnson & Johnson (JNJ)
- Share Price: $166.45
- Positioning: Major player in pharmaceuticals, medical devices, and consumer health.
- Why: J&J’s focus on biotech and personal health technologies positions it well to capitalize on advancements in longevity, digital health, and increasing healthcare needs.
NextEra Energy, Inc. (NEE)
- Share Price: $79.83
- Positioning: Leading renewable energy company.
- Why: As a top producer of wind and solar energy, NextEra is poised to benefit from the global shift towards renewable energy and sustainability.
Zoom Video Communications, Inc. (ZM)
- Share Price: $106.50
- Positioning: Leader in video conferencing and remote communication.
- Why: Zoom’s platform is crucial for remote work, global teams, and virtual education, making it a key player in the evolving work environment.
Taiwan Semiconductor Manufacturing Company (TSMC)
- Share Price: $105.90
- Positioning: World’s largest semiconductor foundry.
- Why: TSMC’s advanced semiconductor manufacturing is critical for AI, personal health tech, and the broader tech industry, enabling the next generation of electronic devices.
CrowdStrike Holdings, Inc. (CRWD)
- Share Price: $144.22
- Positioning: Leader in cybersecurity solutions.
- Why: As cyber threats increase, CrowdStrike’s innovative security solutions are essential for protecting data and infrastructure, especially with the rise of remote work and digital transformation.
Note that the first two results Tesla and Nvidia have been the hot stocks of the last few years and have experienced massive share price appreciation which could affect the future returns if looking at these as a basket of stocks vs the SP500.
We then have some tech giants in Google, Amazon and Microsoft. All of these companies are exploring and investing heavily in the future and you’d expect them to be involved in some way in many emerging opportunities.
Zoom is an interesting one because their product is very replicatable and it will be interesting to see if it can compete with free options like Google Meet over the long-term.
I tried to take this further with the following query to look for less well known/priced in opportunities but the results weren’t great.
Now list 10 small cap stocks outside the US who are positioned to take advantage of these changes
Another interesting query to run:
Brainstorm ideas for new businesses, websites, products and services based on the expected changes over the next decade listed below
Some highlights from the results:
- Integrated urban services for waste management, traffic control, and public safety using IoT and AI.
- On demand coworking spaces with flexible membership plans
- A platform offering resources, job listings, and community support for gig workers
- Software for creating high quality video and social media content
- Consultancy for solopreneurs to build and maintain their personal brands
- Providing virtual office addresses and administrative support for remote businesses
- Developing and selling technologies for water efficient farming and vertical agriculture
- Clinics specializing in anti-aging treatments and longevity research
- Advanced wearables that monitor vital signs and provide real-time health insights
- Online platforms connecting patients with healthcare providers for virtual consultations
- Developing modern, community oriented senior living facilities
- AI driven software solutions for various business functions like customer service, HR, and sales
- Online courses and certification programs in AI and machine learning
- Developing and operating EV charging stations in urban and rural areas
- A platform connecting students with qualified tutors in various subjects
- Immersive VR and AR learning experiences for subjects like history, science, and languages
- Social networks that give users control over their data and privacy
- A platform offering cybersecurity news, tools, and resources
- Developing drones and robotic systems for defence and security applications
ChatGPT is an incredible tool to bounce ideas off and flesh out your investment thesis. The world is changing and we have never been good at predicting how it will change, perhaps AI will do a better job.
