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Paul Mampilly is an American investor and former hedge fund manager. Paul has been featured on CNBC, Fox Business News and Bloomberg TV. He is the founder of the popular investment newsletter Profits Unlimited, where he uses his skills, experience and knowledge as a former Wall ... more

The Auto Industry Is About to Completely Change

Date: Thursday, November 9, 2017 12:33 PM EDT

In other words, buying a car is one of the most wasteful expenses imaginable. If you take the 4% number at face value, it means a total wipeout for the auto industry. That’s because it means we could get by with 96% fewer cars if we had a system that uses the cars we own optimally.

This same study also says that, right now, as many as 25% of people are better off using ride-sharing services. These are services like Uber and Lyft that you can call from your smartphone.

I believe this study is right. The automobile of today is the equivalent of the horse and buggy-based transportation system of the 1800s. It’s primed to be replaced by a new transportation system that’s driven by electric, self-driving, internet-connected cars that will completely change transportation and, in time, life as we know it.

Waymo, the autonomous car unit of Google parent Alphabet, already has plans to start testing a new kind of transportation system.

“Because you’re accessing vehicles rather than owning, in the future, you could choose from an entire fleet of vehicle options that are tailored to each trip you want to make,” said Waymo CEO John Krafcik. People could claim the cars for a day, a week or even longer, he said. And, according to Krafcik, driverless cars could be completely redesigned, such as to include a dining area.

Now, many of you will think that this forecast is too strong. You’ll think that just because cars have endured for as long as they have, they’ll continue to be something that people rely on. And because of that, you’ll be tempted to buy car-company stocks as they go down.

However, don’t buy these stocks, however cheap they look. They are doomed.

If you want to invest in the future instead, including the future of cars and transportation, I invite you to join Profits Unlimited today.

Regards,

Paul Mampilly
Editor, Profits Unlimited

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