Leveraging IoT for Smarter Investment Strategies

Can smart technology transform investing? Marc Weisberg, managing principal at Soho Investment Partners, affirms that the Internet of Things (IoT) is reshaping how investors identify growth opportunities.

In 2015 there were 15 billion connected devices worldwide; forecasts project the number to reach 20 billion by 2020. IoT device sales have exploded from $18 billion (€16 billion) in 2009 to $1.1 trillion (€0.97 trillion) by 2017, with a projected $1.7 trillion (€1.51 trillion) in 2019.

Investors should therefore look beyond headline tech giants such as Microsoft, IBM, Amazon, Apple, Alphabet and also consider the semiconductor suppliers powering IoT hardware—chiefly Intel and Samsung.

The term “Internet of Things” was coined by British pioneer Kevin Ashton in 1999, describing a global network where everyday objects—whether inherently connected or not—collect data via sensors and exchange it over the internet.

Today, IoT spans many domains, from smartphones that control thermostats and security systems to smart speakers like Amazon’s Alexa and Echo that serve as home hubs. Wearables such as the Apple Watch and Fitbit monitor health metrics, while robotic vacuums like the Roomba clean autonomously.

IoT also permeates household appliances: smart TVs, refrigerators that track food freshness, toilets with personal wash settings, and ovens that can be pre‑heated remotely.

IoT in Healthcare

In medicine, IBM’s Watson tailors prescriptions to individual patient profiles. Agriculture benefits from sensors monitoring rainfall and soil conditions, and manufacturing sees devices tracking machine performance and efficiency.

General Electric estimates that the Industrial Internet of Things could contribute $10–15 trillion (€8.86–13 trillion) to global GDP in the coming years.

IoT’s impact on infrastructure and finance is profound. Driverless and connected vehicles promise smarter traffic management and could reduce accidents by up to 600,000 annually.

Citywide WiFi

Barcelona exemplifies smart city integration: citywide WiFi now monitors water usage, automates street lighting, digitizes bus routes, and schedules trash collection on demand.

In finance, automated transactions and biometric authentication are raising security standards. Westpac Australia, for instance, deploys beacons that greet customers and recommend products based on their history.

Financial Services Club chairman Chris Skinner predicts that major banks will soon create an “Internet of Value,” a digital arena for Bitcoin‑based trading.

As IoT continues to expand in unforeseen directions, investors encounter new avenues for capital allocation.

Key players to watch include Microsoft, which recently pledged US$5 billion (€4.43 billion) to IoT initiatives; Apple, whose Apple Watch now dominates the wearable market; Intel, which is integrating sensors into a range of devices; and the wireless leaders—AT&T, Verizon, T‑Mobile, Sprint—whose 5G networks will dramatically increase data throughput.

Industrial IoT

General Electric’s smart appliance strategy and the nimble ARM Holdings chipmaker, aiming to rival Intel, highlight the sector’s potential.

In short, IoT’s ubiquity and rapid growth offer as much promise to investors as it does to consumers.

The author of this article is Marc Weisberg, managing principal of Soho Investment Partners.

About the author

Marc Weisberg, managing principal at Soho Investment Partners in New York City, brings deep experience from telecom, media and technology sectors. He now pursues a diversified portfolio that spans cyber security, oil and gas, app development and distilled spirits. His guiding principle? “Trust your gut…always.”