Recommendations On Robotics Stocks 2018?

robotics
machinelearning
ai
valueinvesting
investing

#1

Can anyone recommend any robotics stocks for 2018??


Artificial Intelligence Mutual Funds
What Are Your Robotics Investment Ideas In 2018?
#2

Everyone is looking to invest in robotics companies, the hype is enormous. If you want to invest in robotics ETFs/Mutual Funds (plenty of posts on this site about them), go ahead.

Just don’t expect miracle returns. I think it’s probably fair to assume the hype is already factored into the price!

Why not go left field and think outside the box.

You could invest in a company with a strong moat and brand which would certainly benefit from the robotics revolution…

My idea is: Nike

Cult Brand

I don’t need to go into this part in extreme detail, but Nike is a cult brand. It continues to be one of the most popular brands for millennial and has almost become a symbol of fitness in the west…

This loyal following ensures that the brand continues to attract customers (or subscribers!) and it continues to pull in revenue!

Upside From Automation
The upside from automation could be immense. If the brand has a loyal following, it could dramatically increase margins through automation.

Analysts agree. Analysts at Citibank say that automation would decrease the cost of product for the 2017 Air Max line by 50%!

This would lead to an increase in margins by 12.5%.

If Nike went on to make Nike’s North American footwear sales, Nike could save $400m in labour and material costs, reproducing 5% benefits to shareholders…

Implications
if you are to take off your shareholder hat and put on your human being hat, these changes would have a significant impact on local economies which are dependent on factory work from foreign nationals…

75% Nike’s footwear line workers are based in Vietnam, Indonesia or China.

2015-2017, Nike factories went from 785 to 566! A significant decrease…

Nike will need to develop a strategy to cater to these people and pursue this strategy in a way that allows foreign workers to re-train, or receive income from the government…

Warren Buffett addressed this issue in Time Magazine recently

But if Nike pursues a strategy which is ethical and considerate while increasing productivity…

It could lead to monstrous gains for shareholders!

Now all we have to do is wait for Nike’s stock value to collapse


#3

Check out a very similar idea on Coca-Cola here!!!

#Gains

#Equities

#BuyingCompaniesWithStrongMoatsStrongBrandValueAndStableEarningsForTheLastTenYears


#4

Burberry would also be a great. Iconic brand, popular in China…

And its financials are outstanding:

https://www.gurufocus.com/stock/BURBY

• No debt

• Piles of cash

• Great growth propects

• Iconic brand

• Bound to benefit from robotics revolution…

With a PE of 25 it’s a bit expensive at the moment though…