Families have a unique advantage in their ability to invest with greater flexibility for the longer term, compounding returns and taking valuable positions not justifiable by short-term investors held to quarterly performance reporting.
Long-term investing plays a key role in the investment plans of many families, where patient capital can buy opportunistically and wait through cycles to take full advantage of the secular opportunities on offer. One of the target long-term investment areas is “mega-theme” investing in opportunities created by visible patterns and trends in demographics, markets, and sectors.
The list of long-term strategic opportunities in this chapter may help investors to start to think about where and why to invest for the future. There are opportunities to invest in a different manner from the past as well, investing with a sustainable or principled approach that aims at creating results in both the financial and nonfinancial arenas.
Identifying key global challenges is one thing. Investing in them profitably is another.
There are a number of long-term investment themes that may make sense for investors with the appropriate time frame and staying power. The best opportunities are secular trends, set to run for years, which are not cyclical in nature, not likely to be reversed, and equally unlikely to revert to some past lower mean level of performance. ...