The art of successful investment lies in the choice of certain industries that are most likely to grow in the future.

Computer Industry:

In 1977, Smart Investors would have long ago have recognized the great growth possibilities of the computer industry. The price tag of TRS-80 desktop computer back then was $600 and only 3,000 units were made and sold that year. After that production continue to grow while keeping cost low, with enough marketing they managed to sell 10,000 units the following year. Keep in mind, prices back then was expensive. As compared to typewriters which cost around $450. At that time, an average salary of a US citizen was $13,000 per year. Not to mention the cost of repairs and services was high back then too. It grew popular overtime and production increases over time to meet demand.

In Year 1990s, tech stock was doubling in value everyday and by the end of 2002, the share price drop from 15.00 to 5.00. People called it tech-bubble back then. Most investors have sold and moved on to another industry but the Smart Investors average down and hold. At the start of year 2004, the share started to pick up and the rest was history (look at Nasdaq). 

Automobile industry:

Another example is Ford, an automobile company if you are not familiar. In the early stages of their diffusion, automobiles were essentially assembled by hand, making them very expensive and affordable only to a small (wealthy) segment of the population. As the production efficiency of the assembly line was improved by Ford (among others), the cost of an automobile was substantially reduced through a division of labor and economies of scale. When the Ford Model T was introduced in 1908, it cost about $950 (nominal dollars), with only 10,000 units produced. By 1924, 2 million units were produced at the cost of $300 each, making it one of the most mass-produced cars in history, with a total of 16.5 million units. World War I had disruptive impacts on car production, making resources temporarily more expensive. As soon as the war ended, the improved productivity trend resumed. Another automobile company that grew alongside was Harley-Davidson (motorbike company).

What are the similarity between these tech and automobile industry at that time? Heavy-manpower and Demands.

All that changed when certain companies decides to invest in new machineries that requires less manpower to increase a much higher capacity output. Costs to produce became cheaper too overtime. It took a few years to breakeven but it was worth it when the companies started profiting onwards. The increase of share price followed after that.

Do keep in mind, there were many many competitors in those industries but many faded away due to unable to keep price low, cost low and the inability to invest in new machineries to achieve those.

Healthcare Industry (Glove): (Next-in-line)

You may not agree but gloves is an essential part in our daily life and demand will increase. Government around the world understands the importance of gloves during a pandemic.

Like a gun to a world war. Gloves to a pandemic.

Even without a pandemic, demand of gloves will be there. Just as there isn’t any world war happening right now, guns are still being manufactured till today and firearm industry share prices still increases till today such as SWBI, RGR, Olin and etc, despite no world war happening. Imagine a world without guns in the event if there is a world war that breaks out all of a sudden. It will be chaotic. Just as a pandemic that could happen anytime, we will need gloves to prepare for that future event to defend and protect ourselves.

If you are someone who prefers long term, my advise is to make sure your choice of company are the one that invests in new machineries that uses less manpower AND produces a higher volume of production output later on. Not to mention, low overhead BUT also be mindful to keep a certain standard of quality for all its product.

I cannot advise which company to buy as it will reflect bias view. You have to do your own research for that. My advise is you have to be strong enough to hold any shares that you believe in as long as you can because there will be time that share price will fluctuate unknowingly. Just like Nasdaq stock if you bought and hold $15 in year 2002 (drops to $5 after a few months), your share value today is above $140. 

Good luck in your trading!