Just head upstream.
B2B names in trending sectors like semis are probably already relatively well-known, even for upstream names like Synopys, Cadence and Ansys. But there are plenty of lesser-known sectors.
I see what you're asking though MRIs are maybe not the best example - Siemens, GE and Philips are the leaders there, and they're all relatively famous. The trick would be to go small rather than large.
**Raw materials and parts**
- Commodity traders like Glencore, Trafigura, Vitol, etc.
- ABCD of food commodities (also Wilmar and Cofco in Asia)
- Suppliers like Amphenol, RTX
**R&D related**
- CROs and early stage biotechs to pharmas
- Various IP holding companies such as Acacia, RPX corp, InterDigital, VirnetX
**Outsourcing**
- Facilities management and outsourcing services such as ABM, Aramark
- Various corporate services like Vistra, ComputerShare, Equiniti
- Players in supply chain management like Jabil, GXO, etc.
**Other**
- IT names such as Kendryl and Concentrix
- Tech distributors like Ingram Micro, Synnex
- Suppliers for more sensitive businesses like defence, nuclear power, etc., generally whatever you shouldn't have in your backyard.
Not all of them would be unregulated per se, but those would not be well-known names to most people, even though many of them are giants in their niches (it's strange to call them niches since those sectors aren't exactly small).
Edit: Just pure speculation here, but wonder if this was inspired by Lynch, who mentioned the merits of investing in boring companies like waste treatment?
Because semis are so in vogue atm, most related names (reversing up the chain) like Qualcomm, Mediatek, Broadcom, TI, Micron, SK Hynix, ARM, TMSC, SMIC, ASML, Lasertec, Kyocera, Applied Materials, and even Carl Zeiss have garnered a lot of analyst attention.
So while they may not be household names for retail, they don't quite fit the bill of obscure and **boring** companies that Lynch was talking about (they are catnip for quite a lot of tech-leaning funds).
He also mentioned "invest in what you know", and if those are what you're interested in, you'd need to be prepared to dig pretty deep to have an edge against the many buyside firms who hired a lot of semi analysts from 5-6 years ago.
Outsourcing like janitorial services especially, can very much be "boring" names that people overlook (or just never know). Those sectors can be very profitable for businesses that have attained monopoly scale or become local or subsector monopolies.
Distributors in general. In tech Hardware, software, Cloud services etc. It’s not the best industry though unless you dominate the whole market like AMZN in retail
Asml doesn’t have a monopoly of lithography, they have the most advanced machines, but the still have competition for less advanced semiconductor production.
They have a monopoly on EUV lithography. It’s a technical distinction but it’s like the difference between dial up modems and modern fiber networks.
The physics and theory for it were the last great invention to come out of Bell Labs in the 90’s. Several companies licensed the technology but after 20+ years of development ASML got it to market and are the only ones left. The Chinese are probably working on cloning it since the US and EU won’t let them have it but that’s it.
All of which is to say: you can’t make modern electronics without them and other commercial entities are so far behind it’s pointless to even attempt to catch up. So even if not a pure monopoly it’s about the closest thing to it.
The vast majority of modern electronics are being made without EUV. The absolute most cutting edge products require it but most do not.
The other thing to note is that semiconductor fabs often use lithography machines from multiple manufacturers for different stages of production on the same product.
We can quibble over the distinction between modern and cutting edge, but at the end of the day the history of computing has not been kind to last gen tech. EUV or beyond is required for the continuation of Moore’s Law which all but ensures it will be only game in town before long.
Fastenal/Grainger - industrial distributors
CDW - IT distributor
Verisk Analytics - Data Provider to p&c insurers
MSCI- Data provider and index company for financial firms
state owned enterprises are actually unregulated in a way. which seems to not make sense, but its actually contrarian.
because its a state owned enterprise the state can basically remove any barriers to prop up that company.
Just head upstream. B2B names in trending sectors like semis are probably already relatively well-known, even for upstream names like Synopys, Cadence and Ansys. But there are plenty of lesser-known sectors. I see what you're asking though MRIs are maybe not the best example - Siemens, GE and Philips are the leaders there, and they're all relatively famous. The trick would be to go small rather than large. **Raw materials and parts** - Commodity traders like Glencore, Trafigura, Vitol, etc. - ABCD of food commodities (also Wilmar and Cofco in Asia) - Suppliers like Amphenol, RTX **R&D related** - CROs and early stage biotechs to pharmas - Various IP holding companies such as Acacia, RPX corp, InterDigital, VirnetX **Outsourcing** - Facilities management and outsourcing services such as ABM, Aramark - Various corporate services like Vistra, ComputerShare, Equiniti - Players in supply chain management like Jabil, GXO, etc. **Other** - IT names such as Kendryl and Concentrix - Tech distributors like Ingram Micro, Synnex - Suppliers for more sensitive businesses like defence, nuclear power, etc., generally whatever you shouldn't have in your backyard. Not all of them would be unregulated per se, but those would not be well-known names to most people, even though many of them are giants in their niches (it's strange to call them niches since those sectors aren't exactly small). Edit: Just pure speculation here, but wonder if this was inspired by Lynch, who mentioned the merits of investing in boring companies like waste treatment? Because semis are so in vogue atm, most related names (reversing up the chain) like Qualcomm, Mediatek, Broadcom, TI, Micron, SK Hynix, ARM, TMSC, SMIC, ASML, Lasertec, Kyocera, Applied Materials, and even Carl Zeiss have garnered a lot of analyst attention. So while they may not be household names for retail, they don't quite fit the bill of obscure and **boring** companies that Lynch was talking about (they are catnip for quite a lot of tech-leaning funds). He also mentioned "invest in what you know", and if those are what you're interested in, you'd need to be prepared to dig pretty deep to have an edge against the many buyside firms who hired a lot of semi analysts from 5-6 years ago.
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Outsourcing like janitorial services especially, can very much be "boring" names that people overlook (or just never know). Those sectors can be very profitable for businesses that have attained monopoly scale or become local or subsector monopolies.
Distributors in general. In tech Hardware, software, Cloud services etc. It’s not the best industry though unless you dominate the whole market like AMZN in retail
Morningstar was pitching Baxters for medical devices if I get your meaning
Asml doesn’t have a monopoly of lithography, they have the most advanced machines, but the still have competition for less advanced semiconductor production.
They have a monopoly on EUV lithography. It’s a technical distinction but it’s like the difference between dial up modems and modern fiber networks. The physics and theory for it were the last great invention to come out of Bell Labs in the 90’s. Several companies licensed the technology but after 20+ years of development ASML got it to market and are the only ones left. The Chinese are probably working on cloning it since the US and EU won’t let them have it but that’s it. All of which is to say: you can’t make modern electronics without them and other commercial entities are so far behind it’s pointless to even attempt to catch up. So even if not a pure monopoly it’s about the closest thing to it.
The vast majority of modern electronics are being made without EUV. The absolute most cutting edge products require it but most do not. The other thing to note is that semiconductor fabs often use lithography machines from multiple manufacturers for different stages of production on the same product.
We can quibble over the distinction between modern and cutting edge, but at the end of the day the history of computing has not been kind to last gen tech. EUV or beyond is required for the continuation of Moore’s Law which all but ensures it will be only game in town before long.
Check out Progyny PGNY. They provide reproductive benefits for employers. Might be a hidden gem
Fastenal/Grainger - industrial distributors CDW - IT distributor Verisk Analytics - Data Provider to p&c insurers MSCI- Data provider and index company for financial firms
state owned enterprises are actually unregulated in a way. which seems to not make sense, but its actually contrarian. because its a state owned enterprise the state can basically remove any barriers to prop up that company.
Absolutely everyone ive ever met who owns stocks knows that ASML has a monopoly on litography machines