Modern investment trends are determined by a lot of factors. It is no longer the standard practice to read or watch the news to see which ventures or companies deserve your hard-earned money. A lot of investors today are swayed by personal and political views instead of solely focusing on market trends when assessing business opportunities.
One of the leading factors that help people decide where to invest today is the company CEO. With more immediate access to information through the internet and social media, these figureheads are now largely followed considering their influence not only within their companies, but on the overall market as well. Current investment trends stem from people who are now more watchful of every business, or at times even personal, development within firms, making sure that their financial resources are in the right hands.
Here is a list of investment trends backed by high profile CEOs in 2017.
1. Warren Buffett – Berkshire Hathaway
Trend – Investing in a dedicated CEO
Forbes reports that one of the biggest emerging trends is investing in companies where the CEOs are wholeheartedly dedicated to the company. Shareholders want CEOs to be “all in” so much so that their own personal wealth should be dependent on the company’s success.
Warren Buffett of Berkshire Hathaway spearheads the trend himself with his own investments. His conglomerate, one of the largest public companies in the world, has retained a high growth in book value since the 1960s, giving its shareholders a high sense of trust and security. Buffett is – for all intents and purposes – leading by example, so investors now want to put their money in companies where its growth or demise will have the same effect on their respective executive officials.
2.Roger Lynch – Pandora
Trend: Follow the growth of technology
A lot of investors are usually hesitant to invest in companies that deal with technology. The common notion is that it is an area where not a lot are familiar with to ensure a good outcome. But with a more modern world, technology is easier to understand and experts are making sure that they’re increasingly user-friendly.
For example, music-streaming companies like Spotify and Apple Music are now becoming more prominent. Pandora, a streaming company founded 17 years ago, now look towards this popularity to move forward. Despite its seniority, Pandora has had a rough time growing compared to its contemporaries. As a response, they hired a new CEO who views the industry changes as learning curves.
The company’s new CEO Roger Lynch told Billboard that investors are now willing to collaborate with them in understanding this emerging industry. “Let’s work together to maximize profits for both of our businesses by doing innovative things,” Lynch told his shareholders as he presented his views of the future of Pandora.
3. Jamie Dimon – JPMorgan
Trend: Avoid cryptocurrency
Of course, there are still certain kinds of technology that are considered unwise investments. Since its inception back in 2009, cryptocurrencies have been gaining the attention of investors and business executives. FXCM states the currency is dependent primarily on blockchain, a digitally distributed ledger system. As a result of constant development, cryptocurrencies have become secure, easily traceable, and decentralized.
Despite all of this, however, a lot of investors are still steering clear of cryptocurrencies. CNBC reports that JPMorgan CEO Jamie Dimon is strictly against cryptocurrencies altogether. Dimon states that they are more of a novelty than an actual currency and the government may eventually regulate or even shut them down. Although his response was faced with a lot of backlash, a lot of shareholders still chose to follow his lead.
4. Gary Beasley – Roofstick
Trend: Invest in real estate startups
Investing in real estate has long been a common practice, but the people behind Roofstick feel that the focus should be shifted towards new technological startups similar to their company’s. In an interview with Forbes, Roofstick CEO Gary Beasley and chairman Gregor Watson details why investing in the real estate technology market is wise.
Beasley stresses that real estate holds a massive value in the financial services vertical and its venture into technology is inevitable. “Given the high fees, Byzantine processes and long timelines for closing, the sector is ripe for innovation,” Beasley explained. With regards to the real estate agent’s role in this impending innovation, Watson states that they will still continue to be vital but their responsibilities may completely change in time.
5. Larry Fink – Blackrock
Trend: Passive investing
“Index and ETFs still only represent 10% of the entire equity market global capitalization,” Larry Fink tells The Business Insider in reference to the fund that passively tracks the market. The CEO of Blackrock, one of the world’s biggest investment management corporation, states that passive investing is one this year’s biggest investing trends, and it’s only just beginning.
Passive investing, AKA passive management, is a strategy wherein a market-weighted index or portfolio is tracked. Despite its growing popularity, it has already created problems for Wall Street, driving costs down for mom-and-pop investors.
"One of the leading factors that help people decide where to invest today is the company CEO."