December 15, 2017 / Fortune Asia / Volume 176 / Number 8 / 2018 INVESTOR'S GUIDE



FEATURES

INVESTOR'S GUIDE 2018



You've Won Big. Now Raise the Bar.

By MATT HEIMER

Investors scored healthy returns in the stock market this year. But there won't be as many big winners in 2018. That means it's time to get choosy.

PAGE NO. 32



The All-Tech Portfolio

By JEN WIECZNER with SCOTT DECARLO

Thanks to sweeping changes in business, there are now "tech" companies in every sector of the economy. We found 31 stocks that can help you profit from the revolution.

36



What Is the Smart Money Buying Now?

Interview by MATT HEIMER

A historically long bull market has made bargains scarce. But our panel of market experts continues to see profitable opportunities ahead—powered by software.

48



The Very Long Game

By CHRIS TAYLOR

We're living longer—and that's a mixed blessing. How investors and advisers are scrambling to deal with the prospect of endless retirements.

58



An Ageless VC Gets an Act Three

By JEFF JOHN ROBERTS

One of the nation's first venture capitalists, Alan Patricof, 82, helped build hundreds of companies. Here's why he's turned back to his startup roots—and what he's teaching a new generation.

68



FEATURES

INVESTOR'S GUIDE 2018



When Will the Profit Boom Fizzle?

By SHAWN TULLY

Corporate earnings are soaring. But U.S. companies have benefited in recent years from a highly unusual confluence of events—and those trends are reversing.

PAGE NO. 76



Whatever It Takes to Win

By JEN WIECZNER

Elliott Management is the world's biggest activist hedge fund. But other investors say some of its recent hardball campaigns have gone too far.

82



BlackRock's Predictions for 2018

By MATT HEIMER

With $6 trillion in assets under management, every move BlackRock makes has global ripple effects. Here's an exclusive preview of what its strategists expect from the markets next year.

92



How Schwab Beat Back the Robots

Interview by ADAM LASHINSKY

The 46-year-old brokerage has stayed ahead of the digital wave remaking the industry-by joining in. CEO Walt Bettinger talks to Fortune about the future of finance.

96



Closing America's Idea Gap

By RYAN BRADLEY

We're living in a golden era of tech breakthroughs but getting less bang for our R&D buck. Here's what we can do to fix that.

102



The Mark of Zooko

By ROBERT HACKETT

Two years ago, Bryce "Zooko" Wilcox was running a struggling startup. Now he's helping create privacy tech that could give today's cryptocurrencies a run for their money.

108



Where's the Beef?

By BETH KOWITT

Silicon Valley is betting big that tech can solve one of the food industry's existential problems: how to make meat without animals. Now consumers just need to be persuaded to eat it.

118



DEPARTMENTS



FOREWORD



10 A Market Sobriety Check

Before you race to your broker, read the experts' surprising advice in this year's Investor's Guide.

By CLIFTON LEAF



BRIEFING



11 For Most Donors, Politics Is a Lousy Investment

If government really is for sale, why do so few know how to buy it?

By CHRISTOPHER GLAZEK



14 The 2017 Best in Business

Fortune's annual chronicle of the people, companies, and trends that mattered most this year.



21 Next Gen Goes Next Level

Highlights from Fortune's recent gathering of women innovators in business, government, education, and the arts.

By KRISTEN BELLSTROM



FOCUS



TECH



22 Social Climber

Meridith Valiando Rojas defied convention when she started DigiTour. Now her social media star-studded festival has teens screaming for more.

Interview by SHEILA MARIKAR



24 The Next (R)Evolution

The commercial trucking industry is facing its biggest transformation in 40 years. Automakers and tech companies are vying for pole position.

By KIRSTEN KOROSEC



27 Chipped Into Shape

A wave of consolidation continues to sweep through the semiconductor industry.

Text by AARON PRESSMAN; graphic by NICOLAS RAPP



28 Alibaba's Ambitious Off-Line Plans

Having successfully dominated online shopping in China, Alibaba now sees enormous opportunity in brick-and-mortar stores.

By ADAM LASHINSKY



PASSIONS



29 Unraveling the Cashmere Conundrum

For Mongolian nomadic farmers, cashmere is the ultimate cash crop. But increased global demand is exacting its toll. Can the luxury industry help?

By VALENTINA ZARYA



BACK PAGE



LAST BYTE



132 Fully Employed

A record-setting run of job creation is reaching into virtually every corner of the U.S.

Text by BRIAN O'KEEFE; graphic by NICOLAS RAPP



CORRECTIONS



"Benioff in Bloom" (Nov. 1) misidentified a company Salesforce acquired as Exact Data. The company Salesforce bought is ExactTarget. The story also misspelled the name of a Salesforce partner, Apttus.



"Alphabet's Guru of Googley Rigor" (Dec. 1) mistakenly said the company's human resources group is part of its "real estate and workplace services" organization. It is a stand-alone organization.



ON THE COVER: PHOTOGRAPH BY STEPHEN LEWIS



[IMAGES]



Expert analysis from panelists Savita Subramanian, BofA Merrill Lynch, and David Giroux, T. Rowe Price.

SPENCER HEYFRON



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