Should We Invest or Invent In Graphene?

Beyond The Bubble of Bitcoin – Yes, it’s driven by greed — but the mania for cryptocurrency could wind up building something much more important than wealth(

 

Is there any direct correlation between Bitcoin and Graphene?

Every press release in the tech industry now contains the Graphene phrase. The graphene phenomena story as graphene is the only material capable of changing the world in the near future. It’s ultra-light, just an atom thin, and yet it’s 200 times stronger than steel, flexible, transparent, and more conductive than copper, available to product faster semiconductor transistors, bendable phones, and many other brand new tools and equipments it’s all thank to graphene..

The Graphene story is as soars as Bitcoin story in the decade. Realising the bubble hype strories behind the Bitcoin that taken into effect this time, questions occurs: Is Graphene it also just pumped a lot of hype, like the particular story of Bitcoin hype driven by greedy people (say, big tech investor).

Bitcoin, more exactly, blockchain technology, and surely will graphene, are things we believe much more worthy than capitals flows attracted by big companies that always driven the mass industry.

Blockchain is about general computing ledger, to assure more decentralisation, democration of finance, freedom of speech,  and all common people right to do their daily lives, with inherently contrary out of by big company occupancy or government authorities.

in the other side, Graphene is a quantum phisics, that hopefully capable of mass adoptive, available to everyone intends to create many great invention just from the small labs, by 3D printing, molding, everyday homemade tools. It’s amazing Graphene assure will also support the democration of technology. Great Challenge to startup inventor.

Graphene is a disruptive technology?

For the  investors, the question is whether the graphene it can drive investment returns over the determined time.

An interesting financial research, has briefly explained how big is the investment potential of graphene, as informed in IG Markets Limited:

Because graphene is an emerging technology, it’s hard to know whether you are investing in the real deal. Unscrupulous investment schemes have been trying to cash in on the excitement by misleading investors. Back in 2013 UK financial regulator, the Financial Conduct Authority (FCA), warned retail investors it had uncovered a suspected boiler room scheme, selling what it claimed were graphene-related investments. ‘There is a strong possibility of fraud with graphene because it is unregulated and it is difficult to confirm that you have bought the genuine product’, the regulator said.

As the interest around graphene builds, there could be more opportunities for these sorts of scams to catch out novice investors. So, apart from obviously not buying into graphene through a cold caller, what can investors do to access this interesting story?

At this stage, there are not many publicly listed firms dedicated to the development of graphene. Among the handful that have had their initial public offering (IPO) in the last few years are:

  • Graphene NanoChem
  • Haydale Graphene Industries
  • Applied Graphene Materials
  • Directa Plus
  • Versarien
  • Graphene 3D Lab

As with any young company operating in a nascent sector, investors considering buying these shares should proceed with caution, as they could be risky and volatile. Their share price performance has been very mixed, as you might expect, and potential investors should question whether such a business’s product pipeline and forecast revenues justify its valuation, given graphene is at such an early stage.

Another, safer, option would be to buy blue chip companies, who are doing their own research into graphene, for indirect exposure. Many big companies in sectors like technology, aerospace and pharmaceuticals have begun taking out patents for products using graphene, suggesting it could be a major focus of research and development spending in the future.

It might make more sense to buy shares in the established listed companies that are researching graphene’s commercial applications. That way, if they can’t make money from it for many years, at least you still have a robust, quality company in your portfolio that generates profits from other business areas. Companies that are known, or rumoured, to be putting money into graphene include: Lockheed Martin, Tesla Motors, Nokia, Samsung, Airbus, Apple, and Qinetiq.

Another route would be to buy a fund which has exposure to some of these names. Many of the best performing tech funds will hold Apple, and some will also hold Samsung. You could also buy an Asia fund, such as Schroder Asia Pacific, which counts Samsung as its number one holding, or a wider emerging market fund, like JP Morgan Emerging Markets, to get exposure to the stock. For Airbus, you could hold Invesco Perpetual Global Equity Income, and for Tesla you could hold Baillie Gifford American, which has 6.5% in the electric car maker.

Graphene seems to have amazing potential but, as with any technology at an early stage in its development, investing in it will come with a specific set of risks. Investors would be wise not to bet the whole farm on graphene at this stage, but having a modest, carefully selected exposure to this potentially transformative material might one day transform your portfolio.

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