【Fund Manager's Note】Gu Chao: The charm of investment in the field of science and technology | fund

Looking ahead to the next decade, technological development in the energy sector has begun to accelerate, focusing on two main lines of investment: artificial intelligence and the energy revolution

Text | ABC Cutting-edge Technology Hybrid, ABC Information Media Stock, ABC Innovation growth hybrid fund manager Gu Chao

The biggest charm of investment in science and technology is that scientific and technological innovation can bring about a huge increase in social productivity, before the Industrial Revolution, whether in the East or the West, the per capita GDP of agricultural society has not changed much in the past thousand years. But after the Industrial Revolution, the world's per capita GDP has grown by leaps and bounds, with Europe's per capita GDP increasing 50-fold in 200 years and Chinese average GDP more than a dozen times in 40 years. The main reason for this is that the rapid development of science during the Industrial Revolution promoted technological innovation, which was then transformed into a huge social productivity, which is also the core source of investment returns in the field of science and technology.

Throughout human history, technological innovation can be analyzed by two main lines of development: energy and information. The world is made up of energy and information, and the level of technological development of a civilization can be measured by the use of energy and the ability to create information.

In the past decade, the main line of information technology has been more prominent in terms of investment, and the top five companies of Nasdaq are all in the field of information technology, which mainly benefits from the rapid development of computers and the Internet after 2000. At the same time, this also confirms that the development of science and technology is not uniform, and the technological development in the information field in the past decade has been faster than that in the energy field, so the investment opportunities in the field of information technology are more significant.

Looking ahead to the next decade, we believe that technological development in the energy sector has begun to accelerate, and the future will bring more and more investment opportunities, so we will focus on two investment lines: artificial intelligence and the energy revolution. This artificial intelligence belongs to the main line of information technology, which refers to the replacement of humans by machines in a broad sense, not just humanoid robots. We believe that thanks to the invention of machine learning, especially deep learning, machines are becoming more and more intelligent, and their application fields have gradually expanded from simple repetitive labor to more and more complex scenarios, including smart home appliances, security, industrial, intelligent driving and other fields, and the future development space is huge.

The energy revolution belongs to the main line of energy, and traditional fossil energy has brought huge carbon emissions, which have an increasing impact on the global climate and higher environmental costs. With the innovation of science and technology, the cost of various new energy sources is rapidly declining, considering the pressure of environmental costs and carbon neutrality, the cost of new energy in the future is expected to gradually lower than that of traditional fossil energy, and the global energy structure will usher in great changes, promoting a new round of energy revolution, which contains huge investment opportunities.

The market is a voting machine in the short term and a weighing machine in the long term. Even for high-quality technology companies, their stock prices will fluctuate for short periods of time for various reasons, but as long as the intrinsic value of the company continues to increase, we believe that its stock price will eventually return. We will explore high-quality technology companies with good business models, long-term competitive advantages and growth capabilities through in-depth research, hoping to share their growth by buying and holding them for a long time!