Wednesday, October 18, 2017

My Investment Compass

Yesterday I spent most of my day tinkering with Excel and putting together tables. My analysis was for some investments I plan to make in the near future. It was a reminder of how analytical I can get sometimes. I started out with ABC up and down the X axis, and XYZ on the Y axis and populated the cells with various formulas. Then I would rearrange the line items or add / delete lines all to get the right amount of detail.

In the world of corporate tax (my profession), it's rare that we have to put together a table from scratch. Most of the time, the data is already provided to us and it requires manipulation. Often times it's as easy as performing a VLOOKUP or HLOOKUP or simply using a Pivot Table. But there's just so much information to analyze. The trick is to know what you need for a narrow down the dataset to those categories.

The data I came up with yesterday was based on reading and research I did about various investment products which I plan to place bets on. For me, my interests are currently in:

  • Blockchain technology
  • Cryptocurrency
  • eSports
  • Environment
  • Renewable Resources / Alternative Energy
The potential for each of the above is sky high. I think we're going to see Blockchain become the accounting of the future. Plenty of businesses are currently analyzing how to implement and make use of the technology. From the success and safety of the Blockchain, cryptocurrency was developed potentially to make financial exchanges easier, non-centrally governed, and safer than transactions with intermediaries. It is yet another factor that will shrink the world and create a common denominator to create business across borders. Imagine being able to pay for your meal in a foreign country safely without having to exchange currency or use a credit card and be subject to foreign transaction fees with just the click of a button on your mobile phone. It's potentially that easy. 

Then there's eSports, and if you've read my previous posts you already know what I think. It's sports digitized and the market is only growing. I can only see an upside financially. The downside is going to be getting your kids outside for fresh air to play like the old days of activity and exercise. I'm sure the world will find some health detriments, and we should be sure to combat them and set limits. But the trend is upward for eSports. And like anything that requires moderation, it will be a matter of parental guidance and reasonableness that helps mitigate any health concerns. 

The environment and renewable energy also go hand in hand similar to Blockchain and Cryptocurrency. It's easy, the bet is that renewable and alternative energy sources will improve the environment that we live. And those who create a greener lifestyle should and will benefit in more ways than just financial - health-wise too. Solar energy is really making a statement these days. The tech has been around for years but Tesla and other solar manufacturers are really making it easier and cheaper to be environmentally friendly. Wind is also rising but less publicly. The new turbines on and offshore will have been providing electricity for a while now but drawing much less attention. Similarly, hydroelectric energy has also been around for a while but with few water sources to plug up with dams, it too doesn't get the recognition it deserves for as long as it has already served us. And the remaining alternatives include biomass, geothermal, and tidal have yet to really make a profound impact but again, the potential is great. 

I suppose over these past few months of unemployment, the experiences I've lived through, the reading I've done and the interests I've developed have helped me realize what my future holds. I know better who I want to be and how I want to carry out that lifestyle. For now, the next investments I will make are just a stepping stone for the future I want to build. And like the past few months, I'm sure these investments will be rocky at time but the long term results should be upward trending. (700)

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