Disruptive Innovations – Equity & Commodity Implications

Was reading a report from Citi called “Disruptive Innovations VII – Equity & Commodity Implications”, where they highlight a number of tech innovations that will likely disrupt markets and thus would be good long-term bets from an investing perspective. For some they also recommended which companies to go for, most aren’t on FreeTrade, but it’s interesting nevertheless.

  • Carbon Capture. Carbon dioxide removal, including carbon capture and storage, whilst a nascent technology, is an efficient way to reduce emissions cost-effectively. Good picks: Orocobre Ltd, Ganfeng Lithium, SSAB, ArcelorMittal. Top Pick: AMG.

  • Digital Agriculture. Digital Agriculture seeks to use data and machine learning-driven analysis to allow farmers to make the best possible decisions as they manage their fields, driving higher yields and cost efficiencies. Good pick: Corteva. Top Picks: Bayer, Yara.

  • Recycled Fibres. A chemical recycling process for clothing which would accelerate the potential for a closed-loop system with much lower reliance on virgin raw materials. Top Picks: Inditex. Shenzhou, Coats Group.

  • Gene Therapy. If gene therapy lives up to its potential, the healthcare payer system could also fundamentally change. Good picks: Gilead, Novartis, PTC Therapeutics. Top Pick: Sarepta Therapeutics.

  • Hydrogen-powered Rail. Hydrogen powered trains, using fuel cells, offer zero emissions at the point of use with no upgrade to track infrastructure required. Good pick: Siemens. Top Picks: Alstom, Vestas

  • Quantum Computing. Quantum computing is a disruptive technology that provides a new type of computing power using quantum mechanics. The basic building block of a classical deterministic computer is the bit which has a binary state of either 0 or 1.Top Picks: Alibaba, ASM Pacific Technology.

  • Probiotics/Personalised Nutrition. With medical costs rising around the world, preventive medicine is attracting growing interest. This makes probiotics, which is backed by a growing body of evidence, a promising market. Top Picks: Danone, Kerry, Yakult, DSM, Novozymes.

  • Internet Healthcare. We are already in the early days of Internet healthcare, starting with the advent of telehealth, but we believe we are on the cusp of a transformation in care towards on-demand care. Top Pick: Ping An Good Doctor.

  • Nuclear Fusion. The process of controlled nuclear fusion (CNF), which is antithetical to nuclear fission and extracts energy from merging atoms rather than splitting them, has long been hailed as the ultimate energy source: unlike fossil fuels, it would rely on a virtually infinite supply of hydrogen isotopes; unlike renewables, it would not be intermittent; unlike nuclear fission, it would not produce radioactive waste.

4 Likes

Have a tie up with Bacanora on the Sonora project

Exposure through INRG (Global Clean Energy)

Aye tis a bit lacking! Thanks for the post though, lots to consider.

2 Likes

Gilead is also on FreeTrade for exposure to gene therapy. Perhaps best to wait until Corona washes out as their share price picked up since they got Remdesivir as a potential vaccine.

Still have an eye on Bacanora, didn’t know about the tie-up!