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One of the secrets to Paul Mampilly’s success as a investor is finding and profiting from megatrends. Change is a constant in our society, and those changes inevitably affect companies and how they do business. The Internet itself is a megatrend that has drastically affected the economy and the world. Paul Mampilly enjoys finding the companies that will profit the most from these megatrends, and revealing them to the readers of his investing newsletter, Profits Unlimited, from Banyan Hill Publishing. Helping ordinary people turn thousands of dollars into hundreds of thousands of dollars is his goal for the newsletter.
In earlier articles, Paul Mampilly wrote about three megatrends: the rising of the millennial generation, the Internet of Things and precision medicine. In a recent blog post from Thanksgiving, he reveals he has discovered two more megatrends, and they will help guide his stock recommendations for 2018 and beyond.
The first of these new megatrends Paul Mampilly found is financial technology, or fintech. The biggest element in this one is the blockchain. The inventor of Bitcoin, Satashi Nakamoto, figured out how to use blockchain technology so people could safely transfer money easily, quickly and privately, without involving any third parties such as banks, government agencies, credit cards or payment processors. All financial transactions using Bitcoin are stored on a database that is distributed across many different computers, not just those belonging to a third-party. The transaction is not approved until it’s validated across the entire system. This makes fraud next to impossible. The ironic part is, Satoshi’s blockchain solution to the problem of maintaining cryptocurrency security can be adapted to many uses. Banks and other financial institutions are quickly adopting it. Even governments are planning to issue their own cryptocoins. In the future, Satoshi will be revered as the inventor of the blockchain even if Bitcoin itself is forgotten.
The second of the new megatrends discovered by Paul Mampilly is new sources of energy. He’s especially interested in energy that is storable and renewable, so that includes solar and wind power, geothermal and energy from ocean waves. New storage batteries to power electric cars are being developed. Much of this power will be local, so it does not overburden the current energy grid, which must be revamped to handle the demands for energy in the future. Both the Internet of Things megatrend and the blockchain megatrend will demand huge amounts of energy.
Paul Mampilly @ Twitter