What makes "high-touch concierge" businesses unique as investments?

High-touch concierge businesses focus on providing extremely personalized, premium services to wealthy clients. As investments, they stand out for their pricing power (ability to charge premium rates), high-margin operations, and loyal customer base that tends to be less sensitive to economic downturns. These companies build competitive advantages through reputation, exclusivity, and deep client relationships rather than through cost leadership.

Why would these stocks be resilient during economic downturns?

Luxury service providers often show resilience during economic downturns because their wealthy clientele is typically less affected by economic cycles. High-net-worth individuals generally maintain their spending on premium experiences and services even when the broader economy struggles. Additionally, these businesses often operate on subscription or membership models that generate predictable recurring revenue regardless of economic conditions.

What is meant by "pricing power" in this context?

Pricing power refers to a company's ability to raise prices without losing customers. In the context of high-touch concierge businesses, these companies can often charge premium prices because they provide unique, exceptional services that wealthy clients are willing to pay for. This pricing power translates to higher profit margins and stronger financial performance compared to businesses that must compete primarily on price.

What are ultra-high-net-worth individuals (UHNWIs)?

Ultra-high-net-worth individuals (UHNWIs) are people who have investable assets of at least $30 million, excluding personal assets like their primary residence. This group represents the wealthiest segment of society and is the primary target market for many of the companies in this collection. The global UHNWI population continues to grow year over year, expanding the customer base for businesses offering elite services.

How does a company's "moat" relate to these stocks?

A moat refers to a company's ability to maintain competitive advantages over rivals. For high-touch concierge businesses, their moats typically come from reputation, brand prestige, exclusive relationships, and the deep trust they build with wealthy clients. These advantages make it difficult for competitors to take away their customers, protecting their revenue and profitability over time. The stronger the moat, the more sustainable the company's long-term growth potential.

17 handpicked stocks

High-Touch Concierge

Discover companies that have perfected the art of elite, personalized service for wealthy clients. These carefully selected stocks represent businesses with strong customer loyalty, impressive pricing power, and resilient revenue streams even during economic downturns.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17