Thoughts from our Domestic Equity Team
You will hear more and more about the Internet of Things, or “IoT,” as it is called. Thermostats, front doors and coffee makers that can be controlled with a smartphone. Collars for pets that can track their location. The only limit is our imagination. Think of the movie Minority Report, where even billboards know who you are, so they can market to your needs and seemingly read your mind.
Equipping objects with minuscule identification devices or machine-readable identifiers could transform daily life. For instance, a business may no longer run out of stock or over-invest capital in inventory, as there will be multiple ways to track and identify which products are being consumed and which products are nearing levels that require restocking. The expectation is that we could have billions, even trillions of objects that could be connected to the internet, exchanging information, to change how we live. This would be a huge change, one that could dwarf the mobile and Smartphone revolution that we have seen.
Google recently paid $3.2 billion for Nest, an internet connected device maker. We believe this is a serious investment to expand Google's reach, and will potentially provide it with robust data about how people interact with their environment. It may also help to ensure Google’s role in mobile advertising in the future. Apple’s recent announcement about embedding its operating system into cars, and all too common articles about Google’s driverless car, are examples of how the world is changing right in front of us. These are multi-year shifts that can occur independently of macroeconomic cycles, and we seek to focus on changes like these to try and capitalize on the opportunities they provide.
Submitted By: Nainesh Shah, CFA – Portfolio Manager
This information is intended solely to report on investment strategies and opportunities identified by Roosevelt. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Please contact us at 646-452-6700 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions, or if you would like to request a copy of our Code of Ethics. Our current disclosure statement is set forth on our Form ADV Part II, available for your review upon request, and on our website, www.rooseveltinvestments.com.