INVESTING IN EXPONENTIALS · TSG Sector Classification 3D Printing Artificial Intelligence Big Data ... Energy Financial Health Care Industrials Technology Materials Real Estate Telecommunication

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INVESTING IN

EXPONENTIALSEvelyne Pflugi

[email protected]

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“It is not the strongest of the

species that survives, nor the

most intelligent that survives.

It is the one that is

most adaptable to change”

(Charles Darwin, Scientist)

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Technologies that have changed

the world…

Source: Westerhout Delft-University-of-Technology

Adoption (% of Households)

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… have one thing in common…


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…have one thing in common …


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… an ever accelerating adoption rate


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Exponential technologies propel

each other to increasing rates of

growth, adoption, change.

Tech

Adoption

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Approaching Tech Investing:

Pitfalls & Opportunities

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Did you know?

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Tech Investing: Capex and R&D

Spending Doesn’t Always Drive Success

Cumulative R&D Spending (U.S. $B), 2005-2007,

Bloomberg

$13.4B

$2.0B

2005 2006 2007

Chart Source: Bloomberg

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Did you know?

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MOOG MOTION

CONTROLNew Energy, Space, Robotics, 3D Printing, Artificial Intelligence

Tech Investing: Classification

ICB: Industrials

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Chart Source: The Singularity Group AG

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Source: The Singularity Group AG

BASF

ADIDAS

RIO TINTO

DISNEY

PEPSI

XYLEM

…

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Technology

Sector

Tech Outside

Tech

All Sectors

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Exponential Revenue

10% of Company Revenue

New Technology

‘Hype’

Initial Capex

Initial Cost

Initial Revenue

This time lag gets underestimated


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CapexMarketing, PressTechnology CompaniesHigh Valuations

RevenueBusiness IntegrationBusiness TransformationValue Creation

Exponential Revenue

10% of Company Revenue

New Technology‘Hype’

Initial Capex

Initial Cost

Initial

RevenueThis time lag gets underestimated


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Valuation

SINGULARITY

SWEET SPOT


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Global Equity Universe

Universe: 90’000 Listed Equities

GlobalAll Sector

All Market Cap


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GlobalAll Sector

All Market Cap

Benchmarks

Technology

Global Equity Universe


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Benchmarks

Technology

Singularity4000 Revenue exposure to Singularity Sectors

> 0%

Singularity Universe


GlobalAll Sector

All Market Cap


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Singularity4000 Revenue exposure to Singularity Sectors > 0%



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Singularity4000 Revenue exposure to Singularity Sectors > 0%

Singularity UniverseRevenue exposure to Singularity Sectors >

10%



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TSG Sector Classification

3D Printing

Artificial Intelligence

Big Data

Bioinformatics

Blockchain

Internet of Things

Nanotechnology

Neuroscience

New Energy

New Space

Robotics

Virtual and Augmented Reality

GICS or ICB

Sector Classification

Consumer Discretionary

Consumer Staples

Energy

Financial

Health Care

Industrials

Technology

Materials

Real Estate

Telecommunication Services

Utilities


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Exponential technologies

propel each other to increasing

rates of growth, adoption, change.

Tech

Adoption

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Tech Adoption

Source: Comin and Hobijn et al; OurWorldInData.org/techn

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Tech Adoption

Source: Comin and Hobijn et al; OurWorldInData.org/techn

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https://www.emarketer.com/content/nearly-half-of-us-households-are-now-amazon-prime-subscribers

Companys That Responded to

Technology Adoption of the Market

Source: Comin and Hobijn et al; OurWorldInData.org/techn; Sources: Statista 2019, Emarketer

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https://www.emarketer.com/content/nearly-half-of-us-households-are-now-amazon-prime-subscribers

,,GM ignored newtechnologies and failed to innovate’’

Ignoring Further Tech-Development

Source: Comin and Hobijn et al; OurWorldInData.org/techn; Sources: Statista 2019, Emarketer

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Tech Adoption - Outlook

Advanced Materials

Multiple Material Robotic 3D Print

Blockchain in Healthcare?

Cryptocurrencies in Investment Portfolios

20XX//

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Innovation

Happens In

All Sectors

Technology

Changes All

Sectors

Singularity

Sectors Can

Create Value In

Multiple

Industries

Outside Tech

Every Company

Can And

Should Be An

Innovation

Company

It’s Time for a New Classification System for Equities

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Revenue in Exponential Technologies

34%

16%15%

11%

7%

6%

5%

2%2%

2%

Technology

Industrials

Healthcare

Consumer Goods

Financials

Consumer Services

Telecom

Materials

Energy

Utilities

Other


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20.0%

18.7%

11.2%10.1%

8.8%

8.5%

7.4%

4.0%

4.0%3.5%

3.1%Big Data

Internet of Things

Space

Neuroscience

Artificial Intelligence

Bioinformatics

Robotics

Blockchain

Virtual Reality

3D Printing

New Energy

Nanotechnology



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55%

8%

7%

7%

5%

5%

4%4%3%3%North America

Germany

Japan

Other

Hong Kong

South Korea

United Kingdom

Netherlands

Switzerland

Taiwan

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Source: Factset – for more detail, please contact us ([email protected])

Portfolio PerformanceThe Singularity Group is exclusive owner of the Nasdaq Singularity Index

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As technologies change the

world, the way we live, and the

economy – it is about time that

we change the way we think

about investing.

Exponential Investing

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Evelyne Pflugi

[email protected]

Documents

INVESTING IN EXPONENTIALS · TSG Sector Classification 3D Printing Artificial Intelligence Big Data ... Energy Financial Health Care Industrials Technology Materials Real Estate Telecommunication