I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.
– Jimmy Dean
The world is changing faster than ever before.
With billions of people hyper-connected to each other in an unprecedented global network, it allows for an almost instantaneous and frictionless spread of new ideas and innovations.
Combine this connectedness with rapidly changing demographics, shifting values and attitudes, growing political uncertainty, and exponential advances in technology, and it’s clear the next decade is setting up to be one of historic transformation.
But where do all of these big picture trends intersect, and how can we make sense of a world engulfed in complexity and nuance? Furthermore, how do we set our sails to take advantage of the opportunities presented by this sea of change?
The Intersection of Data and Powerful Visuals
Interpreting massive amounts of data on how the world is changing can be taxing for even the most brilliant thinkers.
For this reason, our entire team at Visual Capitalist is focused on using the power of visual storytelling to make the world’s information more accessible. Our team of information designers works daily to transform complex data into graphics that are both intuitive and insightful, allowing you to see big picture trends from a new perspective.
After all, science says that 65% of people are visual learners – so why not put data in a language they can understand?
While we regularly publish our visuals in an online format, our most recent endeavor has been to compile our best charts, infographics, and data visualizations into one place: our new book Visualizing Change: A Data-Driven Snapshot of Our World, a 256-page hardcover coffee-table book on the forces shaping business, wealth, technology, and the economy.
The book focuses on eight major themes ranging from shifting human geography to the never-ending evolution of money. And below, we present some of the key visualizations in the book that serve as examples relating to each major theme.
1. The Tech Invasion
For most of the history of business, the world’s leading companies have been industrially-focused.
Pioneers like Henry Ford and Thomas Edison innovated in the physical realm using atoms – they came up with novel ways to re-organize these atoms to create things like the assembly line and the incandescent lightbulb. Then, companies invested massive amounts of capital to build physical factories, pay thousands of workers, and build these things.
The majority of the great blue chip companies were built this way: IBM, U.S. Steel, General Electric, Walmart, and Ford are just some examples.
But today’s business reality is very different. We live in a world of bytes – and for the first time technology and commerce have collided in a way that makes data far more valuable than physical, tangible objects.
The best place to see this is in how the market values businesses.
As you can see above, companies like Apple, Amazon, and Microsoft have supplanted traditional blue chip companies that build physical things.
The tech invasion is leveraging connectivity, network effects, artificial intelligence, and unprecedented scale to create global platforms that are almost impossible to compete with. The tech invasion has already taken over retail and advertising – and now invading forces have their eyes set on healthcare, finance, manufacturing, and education.
Will atoms ever be more valuable than bytes again?
2. The Evolution of Money
Money is arguably one of humanity’s most important inventions. From beaver pelts to gold bars, the form and function of money has constantly fluctuated throughout history.
In the modern world, the definition of money is blurrier than ever. Central banks have opted to create trillions of dollars of currency out of thin air since the financial crisis – and on the flipside, you can actually use blockchain technology to create your own competing cryptocurrency in just a few clicks.
Regardless of what is money and what is not, people are borrowing record amounts of it.
The world has now amassed $247 trillion in debt, including $63 trillion borrowed by central governments:
In today’s unusual monetary circumstances, massive debt loads are just one anomaly.
Here are other examples that illustrate the evolution of money: Venezuela has hyperinflated away almost all of its currency’s value, the “War on Cash” is raging on around the world, central banks are lending out money at negative interest rates (Sweden, Japan, Switzerland, etc.), and cryptocurrencies like Bitcoin are collectively worth over $200 billion.
How we view money – and how that perception evolves over time – is an underlying factor that influences our future.
3. The Wealth Landscape
Wealth is not stagnant – and so for those looking to make the most out of global opportunities, it’s imperative to get a sense of how the wealth landscape is changing.
The modern view is either extremely healthy or bubbly, depending on how you look at it: Amazon and Apple are worth over $1 trillion, Jeff Bezos has a $100+ billion fortune, and the current bull market is the longest in modern history at 10 years.
Will this growth continue, and where will it come from?
Here’s one look based on projections from the World Bank:
Despite these estimates, there is a laundry list of items that the ultra-wealthy are concerned about – everything from the expected comeback of inflation to a world where geopolitical black swans seem to be growing more common.
Here’s why those building and protecting wealth are rightly concerned about such events:
But the wealth landscape is not all just about billionaires and massive companies – it is changing in other interesting ways as well. For example, the definition of wealth itself is taking on a new meaning, with millennials leading a charge towards sustainable investing rather than being entirely focused on monetary return.
How will the wealth landscape look a decade from now?
4. Eastern Promises
The economic rise of China has been a compelling story for decades.
Up until recently, we’ve only been able to get a preview of what the Eastern superpower is capable of – and in the coming years, these promises will come to fruition at a scale that will still be baffling to many.
Understandably, the scope of China’s population and economy can still be quite difficult to put into perspective.
The following map may help, as it combines both elements together to show that China has countless cities each with a higher economic productivity than entire countries.
In fact, China has over 100 cities with more than 1,000,000 inhabitants. These cities, many of which fly below the radar on the global stage, each have impressive economies – whether they are built upon factories, natural resource production, or the information economy.
As one impressive example, the Yangtze River Delta – a single region which contains Shanghai, Suzhou, Hangzhou, Wuxi, Nantong, Ningbo, Nanjing, and Changzhou – has a GDP (PPP) of $2.6 trillion, which is more than Italy.
Don’t forget: our new book covers
all of these eight themes in detail:
5. Accelerating Technological Progress
As we’ve already seen, there are many facets of change that will impact our shared future.
But here’s the kicker: when it comes to technological progress, the rate of change itself is actually getting faster and faster. Each year brings more technological advancements than the last, and once the exponential “hockey stick” kicks into overdrive, innovations could happen at a blindsiding pace.
This could be described as a function of Moore’s Law, and the law of accelerating returns is also something that futurists like Ray Kurzweil have talked about for decades.
Interestingly, there is another offshoot of accelerating change that applies more to the business and economic world. Not only is the speed of change getting faster, but for various reasons, markets are able to adopt new technologies faster:
New products can achieve millions of users in just months, and the game Pokémon Go serves as an interesting case study of this potential. The game amassed 50 million users in just 19 days, which is a blink of an eye in comparison to automobiles (62 years), the telephone (50 years), or credit cards (28 years).
As new technologies are created at a faster and faster pace – and as they are adopted at record speeds by markets – it’s fair to say that future could be coming at a breakneck speed.
6. The Green Revolution
It’s no secret that our civilization is in the middle of a seismic shift to more sustainable energy sources.
But to fully appreciate the significance of this change, you need to look at the big picture of energy over time. Below is a chart of U.S. energy consumption from 1776 until today, showing that the energy we use to power development is not permanent or static throughout history.
And with the speed at which technology now moves, expect our energy infrastructure and delivery systems to evolve at an even more blistering pace than we’ve experienced before.
7. Shifting Human Geography
Global demographics are always shifting, but the population tidal wave in the coming decades will completely reshape the global economy.
In Western countries and China, populations will stabilize due to fertility rates and demographic makeups. Meanwhile, on the African continent and across the rest of Asia, booming populations combined with rapid urbanization will translate into the growth of megacities, holding upwards of 50 million people.
By the end of the 21st century, this animation shows that Africa alone could contain at least 13 megacities that are bigger than New York:
By this time, it’s projected that North America, Europe, South America, and China will combine to hold zero of the world’s 20 most populous cities. What other game-changing shifts to human geography will occur during this stretch?
8. The Trade Paradox
By definition, a consensual and rational trade between two parties is one that makes both parties better off.
Based on this microeconomic principle, and also on the consensus by economists that free trade is ultimately beneficial, countries around the world have consistently been working to remove trade barriers since World War II with great success.
But nothing is ever straightforward, and these long-held truths are now being challenged in both societal and political contexts. We now seem to be trapped in a trade paradox in which politicians give lip service to free trade, but often take action in the opposite direction.
To get a sense of how important trade can be between two nations, we previously documented the ongoing relationship between the U.S. and Canada, in which each country is the best customer of the other:
With the recent USMCA agreement, the two countries seem to have sorted their differences for now – but the trade paradox will continue to be an ongoing theme in economics and investing at a global level for many years to come, especially as the trade war against China rages on.
Points to Consider:
How You Can Visualize Change
The forces behind change are not always evident to the naked eye, but we believe that by fusing data, art, and storytelling together that we can create powerful context on the trends shaping our future.
If you enjoyed our summary above, you can explore these ideas further with our book “Visualizing Change”, which offers 256 pages of infographics, data visualizations, and charts on the future direction of the global economy and technology.
How Different Generations Think About Investing
Each generation was shaped by unique circumstances, and these differences translate directly to the investing world as well.
How Different Generations Think About Investing
View the full-size version of the infographic by clicking here
Every generation thinks about investing a little differently.
This is partially due to the fact that each cohort finds itself on a distinct leg of life’s journey. While boomers focus on retirement, Gen Zers are thinking about education and careers. As a result, it’s not surprising to find that investment objectives can differ by age group.
However, there are other major reasons that contribute to each unique generational view. For example, what major world events shaped the mindset of each generation? Also, what role did culture play, and how do things like economic cycles factor in?
Finding Generational Discrepancies
Today’s infographic comes to us from Raconteur, and it showcases some of the most significant differences in how generations think about investing.
Let’s dive into some of the most interesting data:
1. Investment Outlook
The majority of millennials (66%) are confident about investment opportunities in the next 12 months. This drops down to 49% when boomers are asked the same question.
How did different generations of investors react to recent bouts of volatility in the market?
- 82% of millennials made changes to their portfolios
- 69% of Gen X made changes
- 47% of boomers made changes
- 32% of the Silent Generation made changes
3. Knowledge and Ability
In terms of investment knowledge, 42% of millennials considered themselves to be experts in the field. On the same question, only 23% of boomers could say the same.
4. Financial Goals
Back when they were 27 years old, 45% of Gen Xers said their primary goal was to buy a home. Compare this to just 23% of millennials that consider a home to be their primary investment objective today.
5. Managing Investments
The majority of millennials (66%) saw the ability to manage all aspects of personal finance, including investments, in the same app as being important. Only 35% of boomers agreed.
Similarly, 67% of millennials saw recommendations made by artificial intelligence as being a basic part of any investment platform. Both Gen Xers and Baby Boomers were more hesitant, with 30% seeing computer-based recommendations as being integral.
6. Impact Investing
Millennials are twice as interested in ESG (environmental, social, and governance) investing, compared to their boomer counterparts. In fact, the majority of millennials (66%) choose funds according to ESG considerations.
Reasons for Not Investing
While generations may have varying investment philosophies, they seem a little more in sync when it comes to having reasons not to invest.
|Recognize future outlook would be better if they start investing||72%||73%||57%|
|Want to try out investing with a low money commitment||35%||31%||25%|
|Afraid of losing everything||42%||29%||28%|
|Too worried about current financial situation to think about future||49%||46%||32%|
|Find information about investing difficult to understand||63%||59%||55%|
|Don't have enough money to start investing||55%||59%||56%|
There are some similarities in the data here – for example, non-investors of all generations seem to have an equally tough time learning about investing, and similar proportions do not believe they have the funds to start investing.
On the flipside, it seems that millennials are more worried about their financial future, while simultaneously seeing a risk of “losing everything” stemming from investing.
Here’s How Much the Top CEOs of S&P 500 Companies Get Paid
Does high pay for CEOs translate into company performance? See for yourself in this visualization featuring the top CEOs of companies on the S&P 500.
How Much the Top CEOs of S&P 500 Companies Get Paid
How much do the CEOs from some of the world’s most important companies get paid, and do these top CEOs deliver commensurate returns to shareholders?
Today’s infographic comes to us from HowMuch.net and it visualizes data on S&P 500 companies to see if there is any relationship between CEO pay and stock performance.
For Richer or Poorer
To begin, let’s look at the highest and lowest paid CEOs on the S&P 500, and their associated performance levels. Data here comes from a report by the Wall Street Journal.
Below are the five CEOs with the most pay in 2018:
|Rank||CEO||Company||Pay (2018)||Shareholder Return|
|#1||David Zaslav||Discovery, Inc.||$129.4 million||10.5%|
|#2||Stephen Angel||Linde||$66.1 million||3.1%|
|#3||Bob Iger||Disney||$65.6 million||20.4%|
|#4||Richard Handler||Jefferies||$44.7 million||-14.9%|
|#5||Stephen MacMillan||Hologic||$42.0 million||11.7%|
Last year, David Zaslav led top CEOs by taking home $129.4 million from Discovery, Inc., the parent company of various TV properties such as the Discovery Channel, Animal Planet, HGTV, Food Network, and other non-fiction focused programming. He delivered a 10.4% shareholder return, when the S&P 500 itself finished in negative territory in 2018.
Of the mix of highest-paid CEOs, Bob Iger of Disney may be able to claim the biggest impact. He helped close a $71.3 billion acquisition of 21st Century Fox, while also leading Disney’s efforts to launch a streaming service to compete with Netflix. The market rewarded Disney with a 20.4% shareholder return, while Iger received a paycheck of $65.6 million.
Now, let’s look at the lowest paid CEOs in 2018:
|Rank||CEO||Company||Pay (2018)||Shareholder Return|
|#3||A. Jayson Adair||Copart||$203,000||82.2%|
|#4||Warren Buffett||Berkshire Hathaway||$398,000||3.0%|
|#5||Valentin Gapontsev||IPG Photonics||$1.7 million||-47.1%|
On the list of lowest paid CEOs, we see two tech titans (Larry Page and Jack Dorsey) that have each opted for $1 salaries. Of course, they are both billionaires that own large amounts of shares in their respective companies, so they are not particularly worried about annual paychecks.
Also appearing here is Warren Buffett, who is technically paid $100,000 per year by Berkshire Hathaway plus an amount of “other compensation” that fluctuates annually. While this is indeed a modest salary, the Warren Buffett Empire is anything but modest in size – and the legendary value investor currently holds a net worth of $84.3 billion.
Finally, it’s worth noting that while J. Jayson Adair of Copart was one of the lowest paid CEOs at $203,000 in 2018, the company had the best return on the S&P 500 at 82.2%. Today, the company’s stock price still sits near all-time highs.
Finally, let’s take a peek at the CEOs that received the highest shareholder returns, and if they seem to correlate with compensation at all.
|Rank||CEO||Company||Pay (2018)||Shareholder Return|
|#1||A. Jayson Adair||Copart||$203,000||82.2%|
|#2||Lisa Su||AMD||$13.4 million||79.6%|
|#3||François Locoh-Donou||F5 Networks||$6.9 million||65.4%|
|#4||Sanjay Mehrotra||Micron Technology||$14.2 million||64.3%|
|#5||Ken Xie||Fortinet||$6.8 million||61.2%|
Interestingly, three of highest performing CEOs – in terms of shareholder returns – actually took home smaller amounts than the median S&P 500 annual paycheck of $12.4 million. This includes the aforementioned A. Jayson Adair, who raked in only $203,000 in 2018.
That said, there is a good counterpoint to this as well.
Of the five CEOs who had the worst returns, four of them made less than the median value of $12.4 million, while one remaining CEO took home slightly more. In other words, both the best and worst performing CEOs skew towards lower-than-average pay to some degree.
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