Basket cover image
15 handpicked stocks

Razor & Blade Cartel

This carefully selected group of stocks represents companies that have mastered the art of customer lock-in. These businesses offer attractive initial products to secure customers, then generate predictable, high-margin revenue from necessary add-ons and consumables. Each company has been chosen by expert analysts for their successful execution of this powerful business strategy.

stock
stock
stock
stock
stock
stock
stock
stock
stock
stock

+5

Author avatar

Han Tan | Market Analyst

Updated 3 days ago | Published at juin 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

HPQ

HP Inc.

HPQ

Current price

$27.00

Sells printers at a low margin to drive recurring, high-profit sales of proprietary ink and toner cartridges.

KDP

Keurig Dr Pepper Inc

KDP

Current price

$35.18

Markets Keurig coffee brewers to create a captive market for its single-serve K-Cup coffee pods.

SONY

Sony Corporation

SONY

Current price

$28.24

Sells its PlayStation consoles at or near cost to generate substantial profits from game sales and subscription services.

About This Group of Stocks

1

Our Expert Thinking

This collection focuses on the "razor and blade" business model – companies that sell primary products at low costs to secure customers, then profit significantly from recurring sales of proprietary consumables or services. From gaming consoles and printers to coffee makers, these companies have built powerful ecosystems that generate predictable revenue streams.

2

What You Need to Know

These companies typically enjoy strong customer loyalty, significant pricing power, and defensive recurring revenues. The accelerating consumer shift toward subscription services and integrated digital platforms creates a powerful tailwind for these businesses, making them potentially attractive during various economic conditions.

3

Why These Stocks

We've identified best-in-class firms across technology, consumer goods, and healthcare that have successfully created captive markets for their consumables. These companies demonstrate a proven ability to maintain high margins on their recurring revenue streams while expanding their customer ecosystems over time.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+52.58%

Group Performance Snapshot

52.58%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 52.58% over the next year.

10 of 15

Stocks Rated Buy by Analysts

10 of 15 assets in this group are rated Buy by professional analysts.

9.8% vs 4%

Group Growth vs Bank interest

This group averaged a 9.8% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🔁

Predictable Revenue Streams

Companies with the razor & blade model typically generate consistent, recurring revenue that can help insulate them from market volatility. This makes them particularly interesting during uncertain economic times.

💪

Pricing Power Advantage

Once customers are locked into these ecosystems, companies gain significant pricing flexibility on their high-margin consumables. This gives them a powerful competitive edge that smart investors are watching closely.

📈

Subscription Surge

The growing consumer shift toward subscription services and integrated digital platforms is supercharging this business model. Companies mastering this approach could see accelerated growth as this trend continues to expand.

Why Invest with Nemo Money?

Nemo Logo Fade
🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Discover More Opportunities

The New Cost of Compliance: Investing in HR Tech

The New Cost of Compliance: Investing in HR Tech

Australian airline Qantas received a historic $58 million fine for unlawfully dismissing workers, setting a new precedent for corporate accountability in labor practices. This ruling creates an investment opportunity in companies that provide the essential HR, legal, and compliance technologies businesses now need to navigate stricter labor law enforcement.

View stocks
GLP-1s Target Liver Disease

GLP-1s Target Liver Disease

The FDA's approval of Wegovy for a serious liver disease has boosted Novo Nordisk's market position and highlighted a major new application for GLP-1 drugs. This development creates an investment opportunity in companies focused on innovative treatments for metabolic and liver-related conditions.

View stocks
Pharma's Digital Prescription

Pharma's Digital Prescription

Novo Nordisk is partnering with GoodRx to offer its popular drug Ozempic at a reduced price, boosting GoodRx's stock. This collaboration highlights a growing trend of pharmaceutical companies leveraging digital health platforms to improve drug affordability and expand market reach.

View stocks
View All

Frequently Asked Questions

Everything you need to know about the product and billing.