
Emerging industries often present a great investment opportunity. There are industries that will die in the future and new ones will emerge. Your task as a successful long-term investor is to identify these changing trends, and then put your money on the emerging ones. Think of the oil marketing companies. How long do you think oil marketing companies have with most automobile manufacturers moving towards electric vehicles? Or think of agriculture. How difficult will it be for high-yielding hybrid seed manufacturers to take over traditional low-quality seeds?
Like humans, industries are not static. They continuously evolve. Often these changes are drastic like the move towards clean energy or increased automation in factories across the world. Such changes leave behind the old ways of doing things and usher in a new era, led by a new set of companies. The good news is that these big changes or shifts are often gradual and visible; and you can make money off them.
We have spotted five big shifts happening right now. We discuss how they are unfolding and the companies that are likely to gain.