What is a Megatrend?
A megatrend, like a giant tidal wave, can be defined as as gathering wave of change that is slow to form, nearly impossible to reverse, significantly influences the future, possesses an aura of inevitability and has a far and wide-reaching impact on society. The move to contactless payments, the sustained rise in pet expenditure, the acceleration in chronic diseases with the rapidly ageing population and the adoption of alternative energy sources to combat climate change are some examples.
Insync's global megatrends approach provides greater certainty in a rapidly changing world. Identifying the right Megatrend and the best positioned company has proven to deliver outsized returns with a higher degree of certainty and lower risk compared to many other strategies.
Drivers Fuelling Megatrends
Technological innovation, demographic shifts and the shift to net-zero carbon are significant drivers that fuel many megatrends today.
How are Megatrends different from themes and fads?
There is a major difference between themes and fads versus megatrends. There are hundreds of fads and themes which tend to be shorter term in duration, but much fewer megatrends.
Investors today are aggressively investing in fads based on concept and hype, rather than implementing a rigorous and systematic megatrend based approach.
There was huge excitement in the late 1990s about the internet, but it took 12- 15 years before profitable business models started to emerge. In the initial hype phase, investors lost 70-80% of their capital. This is an example that shows most companies fail in the early stages of a trend.
Samples of Companies We Own