As long-term investors it is much more important to be sure that we have invested in the right companies over time and if possible to have capital to take advantage of dislocations like we just had. Our biggest risk is that the companies themselves are disrupted, by competition, innovation or other means. We urge you to read Giles Tulloch’s insight piece for this month Is Rent Money Still Dead Money? about how the next generations are moving from owning to renting assets in almost all aspects of their lives and the implications this will have for our economy and our investments.
Last month, my colleague Zhixin Shu wrote about the rise of E-commerce in China and how it was fast following Western patterns. We wondered, how else has the Internet changed our lives aside from E-commerce? We have of course written about Amazon, our favourite E-commerce investment, and also on how the Internet is an important megatrend to which businesses need to adapt. However, we thought we would consider some of the other effects that the Internet has on our daily lives and where we may be headed.