Investment Theme: Electric Vehicles

Investment themes are important, because they can be drivers of returns for many years to come. An investment theme is about seeing something that is coming long-term and understanding the dynamics in such a way that you are able to profit from it. This is appealing because most investors on wall street does not have the same long term view that you as a private investor can have. Therefore something that will happen 4-5-6 years down the road, might not be priced into stock prices yet. This is a first of many post on an important investment theme in my portfolio.

Even before the launch of the Tesla Model S I have been intrigued by how electric vehicles will be a major game changer. With the success of Tesla I have dug much deeper into what this will mean for the future, and how to play this to make money. If I allow myself to dream a little bit, my vision in a not too distant future is self-driving electric cars, powered by cheap electricity or rooftop solar-panels.  I was going to write a long post about how this will come about, relating to S-curves and such, but then I came across this excellent video by Bloomberg which sums it up nicely. Although they put a oil spin on the story, the basic message is the same, Electric Vehicles (EV), are coming to take over.

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Never invest in Airline stocks.. ..or?

“If you want to be a Millionaire, start with a billion dollars and launch a new airline..”

..Richard Branson supposedly said some years after having launched Virgin Airways.

After some mistakes in my early trading career, where I lost money on airline stocks. Combined with understanding more about the industry, how unprofitable airlines are held afloat by governments pride in having a national airline and how this created an unhealthy price competition and inefficiencies in the industry. I concluded that the business model is dead and I should never waste money on trying to buy airline stocks on the cheap. And yet, here I am, sitting at my desk contemplating how to best write a post about why I see great opportunities in some airline stocks, one in particular.

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Know your benchmark

My Benchmark

Perhaps not the most exciting first post for a blog, but let’s start from the beginning. Apart from talking stocks, investment ideas and probably other nonsense, I intend to run this site for a real money portfolio of stocks. This will be a concentrated portfolio of stocks from around the world.  Thus I need a yardstick to measure my performance/alpha. So let’s get that out of the way, so we later can move on to more fun topics. Since I intend to invest globally (mainly in the developed world), I have chosen MSCI World (Gross Return) as my benchmark, in this post we will get to know that index a bit better and by that understand the shortcomings of such a wide benchmark. Read More