Sabtu, 29 Juni 2024

These mega-caps that will control the global economy

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These mega-caps that will control the global economy

Pierre MJ

Jun 29

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When I invest in a stock, my sole concern is whether it has the potential to one day become a mega-cap (with a market cap exceeding 10,000 billion).

That's one of the reasons why I haven't sold Tesla. When I positioned myself in 2019, I had the conviction that it would become a mega-cap, and I still hold that conviction.

I hold this belief about around ten other companies that make up my current portfolio. When researching a new company, my entire analysis grid is based on this idea.

Tomorrow's economy will be divided between two completely opposite poles:

Mega-cap companies building monopolies based on automation and dehumanization in sectors such as energy, AI, space exploration, transportation, industry, and robotics.
On the other hand, small businesses will operate in opposition to these mega-caps, depending on them while building profitability on human relationships and craftsmanship.

My stock market strategy involves owning shares in future mega-cap companies, while my private equity strategy focuses on businesses based on craftsmanship, creativity, and human relationships.

These two models are opposite, which is why they can coexist. Mega-caps by principle must move towards extreme automation, autonomy, with profitability models based on processes and devoid of human relations. This is why they replace customer service with AI and are poised to lay off tens of thousands of employees at the earliest opportunity.

In the following post, you will find:

An in-depth analysis to understand how tomorrow's economy will operate based on several theories: the theory of corporate growth, economic cycle theory, and Kondratiev waves theory.
Several investment strategies linked to this economic analysis, such as the barbell investment portfolio.
I reveal the 10 stocks in my portfolio that have the potential to become mega-caps and reach a market capitalization of 10,000 billion.

The best strategies are built on convictions and beliefs. To have a conviction, one must study, deeply understand things, and constantly seek ideas that make all the difference in a sector or market.

This is my role with this newsletter: to share a new vision of the world and markets, to share personal convictions.

Please keep in mind that these are not investment advice, but they can still help you build your own worldview and portfolio.

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