It is the policy of urbanization that will drive this economic growth around the world; and for that, heavy engines are a necessary tool, while smartphones are a nice toy.
Engines power machines that construct buildings. Engines run the trucks, buses, locomotives and other vehicles needed for mass transportation -- consumers making $10 a day cannot afford a car. Engines run power plants that provide electricity to city-dwellers.
Cummins, Navistar and Caterpillar have a formidable economic moat.
Compare that to sector-disrupting high tech firms that have been founded in garages and dorm rooms. The barrier to entry is low.
And that's a major reason Warren Buffett eschews the technology area despite his close friendship with Bill Gates. Buffett's Berkshire Hathaway (BRK.A) (BRK.B) buys companies such as Burlington Northern Sante Fe Railroad and Lubrizol, the industrial lubricants firm, among others.
It is also why investors should look to profit from global economic growth from heavy industry, not high technology.
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At the time of publication, the author held no positions in any of the stocks mentioned.
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