A few weeks back, I kicked off the Intelligent Investor Series as part of my weekly commentaries. Th...
The Argus Millennial Generation Portfolio
03/31/2017 2:50 am EST
A new generation of consumers — the Millennials — has recently become the largest demographic cohort in the country, and this group is demanding a new menu of sustainable products and services for an evolving economy, asserts Stephen Biggar, editor Argus Research.
There are now over 92 million Millennials, born between 1982 and 2000 and ranging in age from their mid-teens to their mid-30s. Given this age spread, their purchasing power is still emerging.
According to our research, Millennials have $300 billion in direct purchasing power, mostly representing older Millennials established in their work and families.
They have an additional $500 billion in indirect purchasing power, representing spending by their mainly Baby Boomer parents on housing, sustenance, clothing, education, healthcare and entertainment.
Millennials are coveted by marketers, even though they control less than 40% of their purchasing power. As Millennials rise into their maturity, they will increasingly control their own spending – and disposable income will further rise as mid-20s Millennials pay off their “mountain” of student debt.
Millennials have grown up in the digital age, which has granted them insight into the real world never experienced by prior generations.
Immersed in the real-time news cycle, Millennials insist that their devices and clothes come from workplaces that use resources sparingly, practice sustainability, and treat workers fairly. And as much as they want to make the earth a healthier place, they also insist on healthier fare for themselves and their children.
Millennials more than any prior generation seek to build careers rather than earn salaries; value co-worker networks over any single job; and start their own companies with unmatched entrepreneurial zeal.
The intersection of these trends has resulted in the emergence and growth of numerous companies well suited to the new generation.
Many of these companies are expected to be future industry leaders and are included in the dynamic Argus Universe of Coverage.
A diversified portfolio, of course, is more than just a list of companies. To build the Argus Millennial Generation Portfolio, we have applied concepts such as industry diversification, balance sheet strength and growth at a reasonable price.
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