The Other Side of the Silver Economy
Examining the mortality trends that are throwing up opportunities
“Nothing is certain except for death and taxes.” Benjamin Franklin, 1789
My love for Rolex watches is not well documented.
Nevertheless, I do have a deep-seated relationship with Rolex. The quality, the provenance and the ideals of the company are values that deeply resonate with me. And so it is not difficult to understand why I choose to mark significant moments with Rolex watches.
My undisputed favourite for daily wear has to be the Rolex Yacht-Master, which just combines sporty with elegance so effortlessly for a tool watch. And so it was significant on many levels when I replaced my Yacht-Master with a Fitbit as my watch of choice for my daily wear.
We are living longer, and as a society, we increasingly strive to live healthier lives. This cultural shift towards longevity and well-being is not only altering our daily habits but also reshaping industries.
Take the deathcare industry as a case-in-point. Even though it's still perceived as sad and possibly contentious, the deathcare industry can be examined from a different angle. It's an infrastructure play with significant development potential, as Harald Berlinicke notes. He compares the funeral business to infrastructure play in his most recent remark.
The Smart Money agrees.
For many years, the funeral business has been attractive to Private Equity groups who view it as a reliable and profitable venture. Across Europe, the fundamentals are sound. By 2050, one in five Europeans will be 65 years of age or older, a percentage that is projected to increase to about 30%. The number of deaths is expected to rise as the baby boomer generation matures, increasing the revenue for funeral service companies. Additionally, and unlike in the USA, the funeral sector in Europe is rather fragmented, and so there is room for deal-making and consolidation.
Benjamin Franklin had famously said there is nothing more certain in life than death and taxes. I agree, and my strategy is simple.
I will keep striving to maximize on our increased life expectancy by prioritizing health and longevity, while recognizing that the other side of the coin of an aging society - the death industry - could also offer a stable and lucrative investment.
There are opportunities to be captured. In life and in death.
PS - I have since swapped back the Fitbit for my Rolex Yacht-Master.
Have a great week ahead!
Maryann
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***Disclaimer***
All opinions are my own and personal. This is not investment advice. I do not provide any buying or selling recommendations, nor do I offer any investment advice. You are advised to conduct your own research and due diligence when making financial and investment decisions.