3D Printing Technology Could Bring Down Bunnings in 2014

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It was just over a year ago that I came up with the idea to launch an investment advisory service focused on technology.

That service became Revolutionary Tech Investor.

A lot has happened so far this year.

And in the world of technology, you can be sure that even more will happen in the years and decades to come. But what if you don’t know anything about technology?

Should that prevent you from exploiting the opportunities available in this sector? Not a chance…

There’s a saying in the investing world that you should only invest in businesses you understand. Most people bring up Warren Buffett’s name when mentioning that saying.

Here’s my take on that: it’s garbage advice.

It’s not true that you have to understand a business or industry before investing in it.

What’s most important is to understand consumer demands and broader trends. Once you get that, it allows you to think about which industries could benefit and grow most from those trends.

No Time to Waste in Fast-Moving Technology Sector

Now, I’m not saying that Warren Buffett’s approach doesn’t work. Of course it works. That’s why he has been one of the world’s richest men for the past 20 years.

My point is that in the tech world, the market is always changing. You can’t waste valuable time by trying to understand each aspect of every business. If you try to do that I guarantee you’ll miss out on every tech investing opportunity there is.

Take how my tech analyst Sam Volkering and I approached the 3D printing industry this year. I can’t claim we got in at the ground floor, because we didn’t. The 3D printing industry started to move in 2012, before the launch of Revolutionary Tech Investor.

But if we had tried to get inside every aspect of 3D printing and become technical experts on the subject I know for sure we would have missed out on recommending this fast-growth sector to investors.

You only have to look at the footage Sam shot at the London 3D Print Show earlier this year to see the mind-boggling extent of the industry. Every time I look at the latest 3D printing developments I end up asking more questions about how it’s all possible.

That’s what makes the sector so exciting. That’s what makes it so revolutionary and innovative.

The truth is that no one on Earth fully understands the potential for 3D printing. No one knows the theoretical or actual limitations for this game-changing technology either.

And yet, that didn’t stop me putting together a vision of what things could be like if the 3D printing industry goes in the direction I expect.

Not for Warren Buffett

This is why, as good an investor as Buffett may be, his investing style doesn’t suit innovative tech investing.

Buffett’s investing style relies on finding companies that are already brand leaders. He then buys them when the market has priced them at a discount to their true value.

The idea then is to hold on to those stocks for decades in order to get the full benefit of that company’s growing market dominance.

Revolutionary investing is different. We’re looking for investing opportunities before the company becomes a brand leader.

That may mean the company doesn’t have the strong revenue and profit growth that Buffett looks for. And it most likely means the company doesn’t have the established brand name on which it can build.

This is where it’s important to understand the big picture implications for a particular company and industry.

That’s exactly what Sam and I did with the 3D printing industry. We don’t just see this as an opportunity for people to make plastic toys. We see this as the beginning of a once-in-a-lifetime shift in the manufacturing, distribution and retailing industries.

The End of Walmart

Simply put, if 3D printing takes off as we expect, it could challenge the way many firms do business.

As we noted in a special report for Revolutionary Tech Investor subscribers, 3D printing has the potential to destroy China’s position as a global manufacturing powerhouse.

How? By giving local firms the ability to compete with China by printing-to-order parts and components. No longer would you have to wait days or weeks for a part to be delivered; a local 3D printing store could print the item for you straight away.

But not only that, 3D printing poses a threat to the ‘big box’ retailers too, such as Walmart and Bunnings. Rather than Bunnings out-muscling smaller competitors by offering millions of items at a discounted price, a local hardware retailer could offer many more millions of items, which the store could 3D print at a moment’s notice.

Who needs acres of floor space and rows upon rows of nuts, bolts, and widgets, when a local 3D print centre could print the exact item you need. Think of the benefits. No need to wander aimlessly up and down aisles, wasting your Saturday or Sunday afternoon.

This is where it’s important to have a vision for the future. Only if you have that vision could you have picked or invested in a company and industry still in its infancy.

Without that vision, analysts and investors would have missed out on the 75% gain this particular 3D printing stock has clocked up since we tipped it earlier this year. That’s no mean feat.

A Great New Era for Technology Investing

But the 3D printing industry is just one of the game-changing industries we looked at in 2013.

We also looked at biotechnology, 3D bioprinting (that means 3D printing human tissue!), cyber security and cyber terrorism, and regenerative and personalised medicine.

These are all revolutionary technologies. None of them would fit the bill as an investment for any Buffett-style value investor.

Stocks like these are for speculators who want to get in on the ground floor of the next big investing trend. You can only do that if you’re prepared to speculate on what the future could look like.

2013 was a great year for investing in new technology trends. But based on the work and research Sam Volkering is doing right now to identify the next wave of trends, 2014 and the years beyond look set to be even greater.

Bottom line: this is the time to be a tech investor.

Cheers,

Kris Sayce signature

Kris Sayce

P.S. For the next four days you have the opportunity to take a look the exciting investment opportunities we’re uncovering in Revolutionary Tech Investor for a fraction of the upfront cost. Already we’ve seen gains of 75%, 47% and 65% in just a few months. I believe there’s more to come in 2014. You can access all our research now for just 25% of the full price. But I repeat: this invitation only stands for the next 96 hours. After midnight on Tuesday, 31st December, this offer closes. To take advantage now, click here.

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Kris Sayce
Kris Sayce, dubbed the ‘Jeremy Clarkson of Australian finance’, began as a London finance broker specialising in small-cap stock analysis on London’s Alternative Investment Market (AIM). Kris then spent several years at one of Australia's leading wealth management firms. A fully accredited advisor in shares, options, warrants and foreign-exchange investments, Kris was instrumental in helping to establish the Australian version of the Daily Reckoning e-newsletter in 2005. He is currently the Publisher, Investment Director and Editor in Chief of Australia's most outspoken financial news service — Money Morning.
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4 Comments on "3D Printing Technology Could Bring Down Bunnings in 2014"

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Ken
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Hi Kris, 3D printing will never be able to print the working equivalent of a steel bolt, a nail, or a spanner. Only facsimiles of them. The material isn’t strong enough and the process of layer by layer construction introduces inherent weakness. Even if it was strong enough, at current prices those items would cost much more than the original ones. 3D printing can’t print seeds, rope or gloves… I think that Bunnings and Walmart are safe. If it became viable for some items, I’m sure that they will do it then too. I agree that there is a huge… Read more »
Nick Marshall
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While I have no doubt that technology is game changing – the motor car replaced the horse for instance – but the idea that Wallmart or Bunnings are under threat from 3D printing is ludicrous. If 3D printing becomes the standard way to manufacture thousands of widgets, no doubt those stores will be doing it or sub-contracting the work out. The author is using the headline “The End of Wallmart” as a spruiker’s hook to suck in the punters.I have not yet heard of 3D printers manufacturing metallic nuts and bolts so the line “Who needs acres of floor space… Read more »
Michael
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How does 3D printing replace hot dipped or galvanised steel nuts and bolts? Is 3D printing of high strength steel products even envisaged? For Bunnings to feel threatened, 3D printing would have to produce rolled steel items, planks of wood, lawnmowers, electronics, BBQs.

Sean
Guest

The Royal Air Force recently successfully printed parts for one of their jetfighters. The parts were apparently made of steel

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