What types of businesses will thrive post Covid-19?

The stock market is down. Many companies are transforming themselves during this period. Even wet markets are trying to sell their goods online. Some companies are not expected to survive the recession triggered by Covid-19. But as indicated in my earlier post “which company/industry will survive or this recession”, there are some companies that will survive and some will even thrive during and after this period.

Some of these include those providing essential goods & services such as groceries retailers and healthcare & pharmaceutical companies. Others that enable e-Commerce or support companies in their digital transformation will survive. Many companies with relevant technology applications will also thrive. For example, look at this start-up company that developed temperature-measuring smart glasses. Or the cleaning robot in the next article.

One industry that is really going to struggle post-Covid-19 is the airline industry. It is not a question of whether travel will pick up again. I am quite sure it would in a matter of time. The issue is what type of measures airlines need to adopt for safe-distancing in aircrafts. This may mean that their operating costs may increase significantly, thereby reducing demand. This uncertainty has caused Warren Buffett to divest all his interest in US airline stocks.

If you are an investor, it is worth thinking through all these implications and make smart moves as the stock market throttles along in the current bear environment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s