Bicycles as an investment theme

We live at a time where there are very few original investment ideas being put out there.  For a long time every asset class went up, followed by months where everything went down. It was, as they say, not a stockpicker’s market – it was all about direction.

And now we live in the great confusion. Should we buy buy buy because the government will do whatever it takes, or should we sell sell sell because, as Todd Harrisson likes to say “the cancer is bigger than the patient”? It’s a tough call. But where are the good ideas? Don’t tell me about solar or palladium or gold or biotech or another retail story. Tell me something new. Tell me about something like ehh… BICYCLES. Bicycles make sense to me. More and more cities are promoting bicycle riding, building bicycle lanes and so on. People want exercise and green solutions. They want cheap and they want solid. I was in Shanghai tree weeks ago – they have very nice cars but I did not see one nice bicycle. All their millions of bicycles are total rubbish. If you want another China bull story start watching out once people in China start buying nice bicycles, perhaps encouraged by their government.

Off course selling or building bicycles are horrible businesses. But companies like Shimano could be worth looking into as a long term investment idea as well as other bicycle gear companies (most of these companies like Giro, ABUS, Bell and Brooks are not listed though).

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