Megatrend investing in a nutshell

financialexpress.com:

There is a view that now exists in pockets – ‘buy and hold style of investing is dead’. And at the outset, I can understand why it exists. Businesses are affected by numerous changes like technology, regulatory or policy changes etc. It is becoming difficult to just buy and forget. So I feel, “Buy and hold” investing has become “buy and watch”. One should still plan for a long-term horizon but keep a watch on changing trends.

I started exploring the concept of Megatrends Investing. The term “Megatrends” was coined by John Naisbitt (1980s) describing long term changes that have a transformative impact on businesses. By early 2000s, a lot of investment houses had adopted this approach for determining the future of their investments. In recent years, the adoption of this concept seems to have accelerated.

Change is constant. Sometimes changes often repeat in a cycle. And sometimes, changes are transformative forces that shape our businesses and societies. These long-term changes that have a significant impact on our future are megatrends. They create many trends within them as they impact different sectors and industries. By understanding these megatrends, investors can position themselves to benefit from the future opportunities they present.

Also Read: 10 things investors should check before investing in mutual funds

Megatrends investing is about uncovering, identifying and understanding forces that can change the way businesses and consumers operate. And discovering the investment opportunities they create. Short-term investors tend to be opportunistic and focus on the direction of the next tick. However, long-term investors are more strategic, looking for the direction of growth and endeavouring to identify where the