Paul’s view: My three most attractive markets to invest in

June 19, 2018

 

I was recently asked a direct question by a very close friend. He asked me, within 30 seconds, to name the three sectors that I believed represented the most attractive markets into which to invest money in the coming decade. I thought for a while and responded with the three sectors where I believe there will be some incredible success stories.

– Mental health

– Cyber security; and

– The ‘anti-Plastic’ players

Mental Health is currently a very small market in the context of what I believe it will become. The healthcare market is heavily weighted towards physical well-being, but what we are beginning to see arrive at a pace (including within our pipeline at Bluebox) is an emerging trend of operators who are monetising their strategies in delivering mental well-being. I have no clinical training whatsoever, but the fact that mental health is slowly, but surely, moving into the mainstream healthcare limelight cannot be ignored. Will it be a meditation app that hits the spot (such as Headspace), a chain of clinics that address mental health challenges or another business in the mental well-being ecosystem? We will see, but come the 2050’s, I would suggest that mental health will be treated with equal importance (and with equal public and private budget) as physical health.

Cyber Security has been a highly attractive sector for some while, but I am confident that there will be continuing success stories for operators in the mid-market. Cybercrime is a truly gargantuan challenge that faces individuals, corporates (of all shapes and sizes) and the public sector. The chaos that could be caused by a well-designed and malicious cyber-attack could be huge. Maintaining protection against the ‘bad guys’ will need clever minds and investment and I am sure that there will be some niche operators that will capitalise with excellent IP, a well-crafted strategy and strong distribution.

Anti-plastic players with the right strategy have a seriously exciting future ahead. Plastic is everywhere in our daily lives and the need for its removal is increasingly in the headlines. When my kids showed me last weekend the amount of plastic that was in a single supermarket shopping trip is was truly mind-blowing. And when one considers the environmental impact of this, it brings the sizeable opportunity into focus. Will the success stories be those that are involved in the clear up or will it be those investing in replacement packaging? Either way, I believe that there will be some big winners in this space and accordingly it is one of my three top sectors to be focused on.

Clearly the above thoughts represent my personal opinion and I may be well off the mark on all three themes. It wouldn’t be the first time. However, a 30,000 foot view is helpful in a number of areas of life and investment is one of them. We have a close eye out for businesses in these markets here at Bluebox and have now created a small fund for investment into some of the winners that we hope will knock on our door.

Paul Herman

CEO, Bluebox Corporate Finance

Nothing contained in this blog is intended as investment advice nor should it be relied on as such

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