THERE is greater potential than ever for new technology to disrupt established industries. As such, investors have increased their focus on companies’ ‘disruptive’ abilities when considering investment opportunities. Disruption is not new; as far back as the industrial revolution, inventions such as the ‘spinning jenny’ (textiles) revolutionised industries and changed the way manufacturing was done. We are seeing the same dynamic play out again in the “FAANG” stocks (Facebook, Apple, Amazon, Netflix and Google).

In the coming articles, I aim to demonstrate how technological disruption presents opportunities for companies and industries to increase productivity and efficiency, changing the face of the ‘traditional company’ across a range of sectors.

As investment managers, we invest our clients’ capital in various assets to generate returns. We look for long-term trends to help us identify the most compelling investments. One way this can be done is by searching for themes, for example, the ageing of the population. In a world with 24-hour news and constant social media, it is important to try to take a step back from the ‘noise’ and maintain focus on some of these long-term trends.

The rate of change of disruption is often overestimated in the short term, but underestimated in the long term. In these articles, I will dig deeper into some long-term themes that are underlying the global economy:

  • technology
  • healthcare
  • alternative energy

Many industries are being challenged by the digital world. These core themes look beyond the short-term market ‘noise’, revealing longer term investment ideas and opportunities.

Andrew Wilson

Senior Investment Director

Head of York Office

Brooks Macdonald is a trading name of Brooks Macdonald Group plc used by various companies in the Brooks Macdonald group of companies. Brooks Macdonald Asset Management Limited is authorised and regulated by the Financial Conduct Authority. More details are set out in our website at www.brooksmacdonald.com. The information in this article does not constitute advice or a recommendation and you should not make any investment decisions on the basis of it.