Warren Buffet once said that “risk comes from not knowing what you’re doing.” So if you’re planning to invest this year, the best way to minimize the risk and avoid losses is to do your research and consider all options carefully before you make the big move.
If you need some guidance to help you find the right investment for you, check out the following list of industries that have the most potential for investment in 2019.
E-commerce has been booming all over the world in the past few years and this positive trend is expected to continue in the years to come. In fact, by 2020 e-commerce will have grown by a whopping 200%. That coupled with the fact that consumer confidence has recently risen to an all-time high means is reason enough to take the leap of investment in e-commerce.
It’s no wonder then that e-commerce is considered one of the most promising industry sectors for investment, especially when you consider the upcoming proliferation of tech innovations in online retail, such as voice technology, virtual reality, delivery drones, and AI chatbots.
Buying real estate is one of the best passive income investments you can make due to its stability, high returns, inflation hedge, and investment leverage. Unlike shares, real estate requires less specialist knowledge and prior experience on the part of the investor. Plus, real estate is a tangible investment which makes it less vulnerable to fraud.
When investing in real estate, keep in mind that houses tend to perform better than unites since the value of a house can be divided between the land and the actual building, while the value of a unit usually stays the same. It’s also important to choose the right city and a suburb with the best long-term capital growth.
Based on cash flow, the best Australian suburbs to invest in now are Baxter, Dingley Village, Gladstone Park in Victoria, Birkenhead, O’Halloran Hill, and Reynella in South Australia, Ferny Hills, Eatons Hill, Strathpine in Queensland, and Cromer in New South Wales.
Easy to transfer and store, durable, and resistant to currency fluctuations, diamonds are the perfect choice for those looking for a profitable and low-risk investment. When buying diamonds for investment purposes, it’s best to choose those that have both high demand and scarce supply, namely colored diamonds.
The demand for rare colored diamonds like the Argyle pink diamonds from Australia is significantly higher compared to white diamonds. Colored diamonds are becoming rarer and their value has increased by 89% over the past decade. Pink diamonds, in particular, are known for their exceptional value, which is often up to ten times higher than the price of clear diamonds.
If you’ve been planning to invest in these precious gems, now is the time because the Argyle Mine in Australia, which produces over 90% of the world’s annual natural pink diamond supply, will cease all operations in 2020, causing the value of pink diamonds to skyrocket.
Food delivery is becoming a staple for consumers all over the world. In Australia alone, people spend a dizzying $2.6 billion each year on food and drink delivery provided by companies such as UberEats, Menulog, UberEats, and Deliveroo and food delivery services account for the 12% of the restaurant industry. Over the last few years, food delivery in Australia has become a $200 million industry and it’s expected to grow by another 15% over the next five years.
The demand for online food delivery is on a steady rise and, in order to compete with food delivery giants like UberEATS, more and more new startups are investing in food delivery technology. Considering that the potential for innovation and personalization is extremely high in this sector, investing in a food delivery business is one of the savviest financial moves to make 2019.
In 2016, the Australian Government legalized the use of CBD oil for medical purposes and in 2018 a drug containing cannabidiol was approved by the American Food and Drug Administration for treatment of two rare forms of epilepsy. CBD products are also being researched for their potential therapeutic applications in treating different neurological conditions, alleviating pain, and reducing symptoms of anxiety and other mood disorders.
Even though the heated debate around uses, benefits, and health effects of cannabidiol (CBD) doesn’t look like it will come to an end any time soon, the future of the CBD industry is looking bright. Regardless of your personal opinions about using CBD products, the fact remains that this segment of the market is one of the fastest-growing ones, predicted to reach $2.1 billion by 2020.
A number of CBD companies are slowly but surely moving into the mainstream and the industry could hit $75 billion in annual sales by 2030, making CBD stocks one of the most promising investments for the next ten years.
Due to the increasing fitness awareness and the rising popularity of gyms, the fitness industry revenues in Australia are expected to grow to $2.4 billion by 2022. People of all age groups have begun to treat fitness as one of the most important health investments and wide availability of affordable gym facilities has turned exercise into a booming business.
If you want to become a part of the fast-growing fitness industry, you first need to choose which market segment you want to invest in. This can be anything from specialty gyms and online personal training to apparel, smart wearables, and sports performance drinks. In order to minimize risk in this highly competitive market, it’s also important to set up your budget in advance, build a reliable team, and take networking seriously.
Whether you choose to invest in e-commerce, real estate, rare diamond, food delivery service, CBD products, or the fitness industry, the most important thing to keep in mind is that investing is always going to be a risky business, so the sooner your conquer your fear the better.
So, set clear goals, do proper research, learn as much as you can and, most importantly, stay disciplined and don’t let greed and herd mentality prevent you from building a thriving business in 2019.