RE:RE:RE:RE:RE:Inflationpooltec wrote: Absolutely inflation numbers are a lie, even more so in Canada with all its social programs compared to the US. Experienced, may I ask what we should invest in the next few years.
Thanks for your posts.
Thanks for your kind words..
I am going start by giving the standard response from when I was in the business...."You need to develop an investment strategy based on your financial situation, investment objectives and tolerance to risk and then find companies that meet this strategy" (ie no one shoe fits all)
That said...lol
Over the years, I have found a couple of things that work.
One is to invest in companies in an industry or part of the economy that you know something about since you are better able to assess the prospects of those companies and react in a sensible and informed way to developments. It also pays to literally observe the world in your neighbourhood and talk to people who work for companies around you. I bought HD back in the 90s because everytime I went there to get something the parking lot was full. I talked to the people on the floor to get their opinion on how well the company was being run. It's amazing how many great investments are sitting right under your nose.
The other thing, and this one is much harder, is to step back back from all the day to day noise and try to imagine where the world is going and what the next big thing is. Back in the 70s, I had a friend who was an engineer with Nortel. He was part of a group working on what was then called a digital switch to replace the "Lily Tomlins" from Laugh-in of the world. He said that this technology would change everything about the world we will live in and would result in a convergence of diverse technologies. With his help I figured out which companies would benefit from this world and grow exponentially in this new world. One such area I see today is something called the Metaverse. I must admit that I am still trying to figure it out and then figure out which companies will likely be the beneficiaries of this new technology. I see this as the next big thing and if one can pick the right companies early on, the potential is for 10X gains.
Another trend is the movement away from a carbon intensive world. I see all kinds of problems with this transition which will take decades. One thing I anticipate is that the energy supply grid will become increasingly fragile and grid failures will become a common occurance. Businesses will increasingly be looking for companies that can supply on-demand energy on a local basis right at their place of business as opposed to relying on the grid for all their energy. There is higher risk here since many of the companies in this field are smaller companies or startups, but again, picking the right one could yield amazing results.
Don't know if any of this helps.