In last year's edition of the Ten Best Investment Ideas, we talked about the demographics and dynamics of our population and the businesses that one might consider investing in when trying to take advantage of this longterm theme. In this years report, we continue to believe this theme has legs and will ultimately affect the entire population, from young to old.
At the time of writing, the Federal government announced a Productivity Commission inquiry into the childcare sector and early childhood learning. The anticipated outcomes of this report will include ways to provide a system that is more in line with today's family structure and not necessarily based on the standard 9 to 5 working week. It is also looking to address concerns around the need for higher women workforce participation and address learning and developmental needs of children, while remaining flexible and financially sustainable. The report is due in October 2014 and it will be interesting to see what opportunities lie ahead in that space.
In the media sector, online leaders are becoming more and more prevalent. News and information travels fasterthan ever before and is accessible to anyone, anytime. Most of it is free, but some media outlets are also charging subscribers for access. Online advertising is continuing to grow in a clear sign that consumers are looking to these mediums for solutions. There are a number of online businesses that have grown over the years to now become dominant and most importantly, profitable in their own right. Examples of these include employment and education provider Seek.com.au, CarSales.com.au and Realestate.com.au.
Telstra and Foxtel are examples of media companies capable of delivering a movie to your TV without you actually having to leave the house. With faster data speeds available upon the eventual delivery of the NBN, businesses will be able to offer new entertainment content.
Overseas providers like Netflix provide on-demand movies and TV content streamed over the internet for a monthly subscription and services such as this are likely once data speeds are acceptable to facilitate such services.
With our lives seemingly busier than ever before, online shopping has seen amazing growth across consumers of all ages. Most of the major retailers in Australia now have an online presence, but they swim in a global pool, often against far bigger 'fish'. We need to consider businesses in this space that have a recurring demand. Woolworths and Wesfarmers (owner of Coles and Bunnings), the dominant consumer staples retailers in Australia both provide services that allow shoppers to shop online at a time that suits the consumer and have goods delivered to home. All for a service fee of course. While this has been offered for a number of years, as our lives get busier and we find it less convenient to do the mundane, these services should continue to see greater use in future.
Government policy and intervention from time to time will also play a part. As the population in Australia ages, the demand for aged care services is expected to grow at a faster rate.
The key to investing in this area will be identifying who the major players are and how will they model their business to take advantage of upcoming opportunities. Ramsay Health Care and Sonic Healthcare are two well established healthcare companies that hold dominant positions within their respective fields.
Related links
- Ten best investment ideas 2014 - Focus on your own goals, not the Jones's
- Ten best investment ideas 2014 - Have a process to guide you allowing you to focus on what matters to you
- Ten best investment ideas 2014 - The innovators
- Ten best investment ideas 2014 - The new political regime
- Ten best investment ideas 2014 - Urbanisation and the growth of the middle class
- Ten best investment ideas 2014 - Where to invest offshore?
- Ten best investment ideas 2014 - Yield does not equal income
- Ten best investment ideas 2014 - Infrastructure and property – the new annuities
- Ten best investment ideas 2014 - What to do with the banks?
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