How to Invest in Graphene – A Beginners Guide
Learn how to invest in graphene today. This guide is perfect for beginners who are interested in graphene investment. Since the discovery of this amazing material in 2004, a good number of companies have been investing in graphene. Due to its numerous properties, graphene has been applied in various sectors like energy, medicine, technology, and transport. Graphene could be used to produce computers, smartphone touch screens, batteries, electric cars, energy storage, wearable technology, wind turbine, medical implants, water purification machines, and lightweight aircraft. With all the aforementioned potentials, the next question would be, “is graphene a good investment?”. The next section in this article will throw more light on graphene investment guide.
How Individuals Can Invest in Graphene?
By Buying Shares In Established Graphene Companies
We believe it is a wise investment choice to buy shares in the big companies listed for conducting researches about graphene’s commercial applications. With this, you will have a safer investment in the event they do not profit from graphene for many years. These companies have other business sectors that they invest in; as long as those other sectors generate profits, you are sure to be smiling to the bank. Established businesses that are known or hinted to be investing in graphene are Tesla Motors, Lockheed Martin, Nokia, Samsung, Apple, Airbus, and Qinetiq.
By Buying Mutual Funds That Associated With Big Graphene-Based Companies
This is another good option for investing in graphene. All you need to do is to find out funds that have some exposure with the big names. A good number of the best performing funds will have investments with Apple, whereas others could be Samsung. You could also invest in an Asia fund like Schroder Asia Pacific. Their main investment portfolio is Samsung.
Also, you could tap into a nascent market fund such as JP Morgan Emerging Markets; this exposes you to stock trading. Invesco Perpetual Global Equity Income invests in Airbus while Baillie Gifford American has Tesla in its portfolio;
What You Need To Know About Investing In Graphene
Presently, there are few public list companies involved in graphene research and development. Some of the companies that have had their IPOs over the years are Haydale Graphene Industries, Directa Plus, Applied Graphene Materials, Graphene NanoChem, Versarien, Graphene 3D Lab, etc.
Just like many startups in an emerging market, investors are cautious and skeptical about buying shares because they could be volatile and risky. As expected, the performance of their shares is confusing, and potential investors will question the value of the product given that it’s still at its early stages.
This supports the theory that it is best to invest in blue-chip companies for now. The big companies in the aerospace, pharmaceutical, and technology sectors have started producing patented products with graphene. This implies that it could be a significant research and development focus in the near future.
Why Invest In Graphene?
Scientific researches concerning graphene began in 2004, and researchers have discovered tons of amazing properties and life-changing applications of this material. It is said to be the strongest material ever developed. Scientists state that it is 200 times tougher than diamond and stronger than steel. It is also flexible, thin, and transparent. Graphene is the best electricity and heat conductor. With the great potential this wonder material offers, the research, and business communities are moving to find out and explore more of its benefits.
Since the material has not reached full commercialization, investors are still skeptical about putting in their money. But there are a few reasons why you should invest now. Read below:
Many Companies Are Joining The Train
The commercial use of graphene is still in its early stages; however, new graphene-based companies have been springing up to develop materials, production processes, and other related activities. Graphene is about to bring a turnaround in the manufacturing industries. Makers of batteries, sensors, conductors, electronics, displays, medicine, and energy generation are using this material to create revolutionary innovation.
Studies show that over a hundred companies have begun to produce graphene-based products. The majority of these businesses are private start-ups; however, the pure-play companies have gone public. The industry has witnessed tons of graphene-centered business ideas popping up each day.
Since analysis has shown that graphene is the next big thing, established companies have been doing more research to discover various ways of exploiting this material. Some of the big companies involved in research projects are Intel, Samsung, Nokia, Sony, and IBM. They are in the front burner of graphene research principally in sophisticated fields like photonics and electronics. On the other hand, graphene will characterize a less significant portion of their business if successful.
Favorable Market Size Forecast
According to a report released by Grand View Research, Inc., the global graphene market size will hit $552.3 million by 2025. Experts predict that it will increase at a compound annual growth rate (CAGR) of over 38% within that period. The demand for smart consumer electronics is on the high-rise, and it is expected to be a major catalyst in the graphene market throughout the forecast period.
The latest product launches and increasing use of consumer goods in developing markets of India, China, and Thailand is relied upon to bring positive influence in the graphene market. The integration of ground-breaking innovations in electronic products made in China and Japan is predicted to be the driving force in the electronics market. The Chinese government has invested significantly in research and advancement of the production volume of graphene nanoplatelets to a large extent.
We mentioned earlier that numerous companies in the industry are currently focusing on graphene research and advancement to identify its full potential. For example, a Spanish company, Graphenea, is involved in the development and supply of graphene oxide to diverse research institutes and multinational companies for production purposes. Graphene is still in its trial phase, and commercialization isn’t fully achieved yet as there are many unexploited potentials.
Should You Invest In Graphene?
Perhaps you are unsure if investing in graphene is a wise choice to make. The truth is, graphene investment is a two-way street.
On the positive side, a good number of companies are making graphene-based researches and innovations and give you an opportunity to invest in them. On the flip side, most graphene-centered companies are currently not worth investing in. Whereas, the few that are investment-worthy do not carry out a lot of task with graphene for now.
Graphene, at its plain form, is a sheet of carbon atoms bonded hexagonally. It is the thinnest material in the world and is quite strong and flexible.
Supporters of the use of graphene technology claim it could be used to manufacture by-products that are 200 times durable than steel and with electricity and heat-conducting capacity that beats that of copper. They also maintain that its flexibility is good enough to produce solid tubes for construction purposes. People believe that graphene’s properties have the capacity to make it the next big thing. This is a result of the significant number of graphene innovations being created by established companies like IBM, Nokia, Samsung, and SanDisk; it proves that the material has great potentials.
But do these potentials mean you will be making a profit by investing in graphene stocks?
The Investment Logic
It is logical to believe that the fortune of a firm will be influenced if a considerable part of the business is driven by graphene, and this should be shown in the company’s records with the SEC. At the time of this publication, we went through SEC records for the past few years, trying to find out the names of companies that declared the use of the material in their SEC records.
To our surprise, only a few companies made mention of the use of graphene. SEC record has a lot of companies whose names indicate that they are graphene-based; however, most of these companies are fault constructs. Their revenue or profit margin levels are an abysmal coupled with little market capitalization. In fact, they seem to be non-existent.
More so, the few companies that have graphene in their files say almost nothing about it. On the other hand, the few companies that are recognized fully to be graphene-based are Nokia, Aixtron, etc.
The Outcome For Investors
Possibly you wondering what our main point is? Graphene invest may have some positive outcomes at some point in the future. But according to Aixtron, this material’s full potential will not be achieved soon. This means that every investment you are making is a medium-term or long term.
Since there is a shortage of companies involved in graphene discussion these days, the correct to ask is, “Who are the best graphene companies to invest in?” or “How do I invest in graphene tech?”. The main question should be centered towards finding out if graphene investment at this point is too early or not. From our research and findings, we believe that investing in graphene at this point is 50:50.
It appears that graphene has some amazing potentials, but since it is still a nascent technology, investing in it attracts some risks. For now, it will be an unwise choice to dump all your money on graphene; however, taking time to study more about this technology because making an investment decision will surely be beneficial to you.