Forbes 2019 Themes

Bonus Major Investment Themes for 2019

 

Bonus Trend : The Electrification of Transportation.

This trend could in fact be huge.  Using a baseball analogy, the electrification of transportation is in the 2nd inning whereas cloud computing is in the 6th inning.  Notice this trend is not about electric cars.  Electric cars are just the beginning and granted, they represent the linchpin.  However, this trend will soon begin to change all forms of transportation, including long haul trucks, airplanes, and boats.  (Electric semis will eliminate those slow tractor trailers plodding uphill, clogging up the highway.)  Stock ideas include: Tesla (TSLA), FMC (FMC), Albemarle (ALB), Lime, Byrd, AeroVironment (AVAV) maker of electric powered drones and planes, Zunum Aero a not-yet-public venture company that looks promising.

Second Bonus Trend: Energy

When an old friend becomes new again.  Energy.  Fossil fuels have been beaten into the ground (from whence they came) due to global shifts in supply and demand.  America is now the largest global supplier and the supplier on the margin giving the US some control over global oil markets.  OPEC is quite literally falling apart with long time members simply quitting and walking away.  All this is to point out that oil is cheap and should be going back up in value during 2019. Exxon (XOM) is a stock that has most certainly NOT been anywhere near our buy lists in recent memory.  However, now it looks cheap and inviting.  The entire energy complex is finally beginning to look interesting, from Chevron (CVX) to Cabot Oil (COG) to Halliburton (HAL), Transocean (RIG),  Pioneer Natural Resources (PXD), and Oceaneering Intl (OII)


Third Bonus Trend: Cloud Computing

Cloud Computing is an exciting trend, but it is also a strong trend.  The cloud computing trend has been running for a few years and is likely to continue.  This trend has revolutionized an old tired company that used to sell just software and had virtually zero innovation.  That company is Microsoft (MSFT).  Amazon (AMZN) is not just the company that sells you stuff on the internet – they are the leader in cloud computing via their AWS capabilities.  More stock ideas include: Amazon (AMZN), Microsoft (MSFT), Google (GOOGL), Netflix (NFLX), Salesforce (CRM), Adobe (ADBE), Cloudera (CLDR), Equinix (EQIX), CoreSite Realty (COR); Fireeye (FEYE), Palo Alto Networks (PANW), Fortinet (FTNT), CyberArc (CYBR), for security;  Juniper (JNPR) and Cisco (CSCO) for networking equipment; VMware (VMW)

Fourth Bonus Trend: Autonomous Driving

This movement is in its infancy today.  Currently, we read about the autonomous cars that are in R&D at google (GOOGL), General Motors (GM), Tesla (TSLA), and others.  But this trend has yet to hit mainstream.  When you sit around your Thanksgiving table and your uncles, aunts, cousins, and siblings just arrived in their autonomous car     – then you know this trend has transformed society.  Stock ideas include: Tesla (TSLA), Google (GOOGL) (via Waymo), Nvidia (NVDA) (artificial intelligence chips), Intel (INTC) (bought MobileEye), General Motors (GM), Texas Instruments (TXN) (for real world sensors), Blackberry (BB) for security, NXPI for chips, Bidu (in China), Xilnx (XLNX) (#2 in advanced driver assistance systems according to Morgan Stanley)

Cannabis

More stock ideas include: Constellation Brands (STZ) investment in Canopy Growth (CGC), Altria’s (MO) investment in Cronos Group (CRON), Acreage Holdings (ACRG.U), Molson Coors (TAP), Canopy Growth (CGC), Aurora Cannabis (ACB.TO), Tilray (TLRY), New Age Beverages (NBEV)





5G Telecommunications

More stock ideas include: Verizon (VZ), Nokia (NOK) a top 3 global 5G equipment provider, Ericsson (ERIC) another equipment provider, Qualcomm (QCOM), Apple (AAPL), Intel (INTC), and Samsung (XLON: SMSN) for the upgrade cycle, Netflix (NFLX) as a beneficiary of 5G, AT&T (ATT) and T-Mobile (TMUS) as other providers



The Sharing Economy

More stock ideas include: Uber, Lyft (not to mention foreign versions Careem in the middle east and Yandex (YNDX) in Russia), Airbnb, Booking.com, Lime, Byrd, and the more obvious Amazon (AMZN), Google (GOOGL), GrubHub (GRUB), Expedia (EXPE), Priceline (BKNG). Also, old line companies such as Ford (F) and General Motors (GM) could be reinvigorated and become investment options based on their multi-billion dollar commitments to this new investment thesis.

 

 

NOTE: if you are an existing client, the way to read this information is that we are looking at these companies to determine which ones to add to your portfolio, or, if you already have some MSFT, AMZN, or CRM, we are considering adding more shares to your position. 

If you are you interested in getting into major growth companies like Lime, Bird, Uber and others BEFORE they go public then you should be talking with Warren Financial.  Warren Financial is active in this area.  There are four requirements for you to get in on these exciting opportunities:

  1. This is for accredited investors only. The SEC defines an accredited investor as someone who meets either one of these two tests (no need to meet both tests)
    • a person who has at least $1m to invest (not including their primary residence). Naturally, you don’t have to invest all $1m in any one investment, you just need to have $1m in total assets.
    • a person who has income in excess of $200k in each of the two most recent years or joint income with that person’s spouse in excess of $300k in each of those years and has a reasonable expectation of reaching the same income level in the current year.
  2. You must be prepared for the risk of a non-liquid, immature asset
  3. You must be a wealth management client of Warren Financial. We want to manage all of your portfolio, and provide holistic wealth and planning services for you.  As such, we only allow our best clients access to our best investment opportunities.
  4. Note: this is a commitment on your part. These opportunities don’t come along every day.  Most recently, we allowed about a dozen of our clients to invest alongside Google ventures in Lime.  We don’t know when the next opportunity will come along, so it’s best to transfer your wealth management activities over to our full service offerings at Warren Financial so that when opportunities come around, you won’t miss out.