What makes security stocks a good investment?

Security stocks can offer stability because protection is a fundamental, non-discretionary need for businesses and individuals. Companies in this sector often provide recurring revenue through subscriptions and service contracts, and many benefit from the continuous need for security upgrades as technology advances. This combination of defensive characteristics and growth potential makes them attractive for diverse investment strategies.

How does AI impact the security industry?

Artificial intelligence is transforming security by enabling more accurate threat detection, automated surveillance systems, and predictive analytics that can identify potential security issues before they occur. Many companies in this portfolio are integrating AI into their products to offer smarter security solutions, from facial recognition to behavioral analysis to anomaly detection, creating new revenue opportunities and competitive advantages.

What is the Internet of Things (IoT) in security?

The Internet of Things refers to connected devices that communicate with each other through the internet. In security, this means smart locks, cameras, sensors, and alarms that can be monitored and controlled remotely. This connectivity creates comprehensive security ecosystems where different components work together, allowing for features like automatic alert systems, remote access control, and integration with home or business automation systems.

What are the different types of security companies in this portfolio?

This portfolio covers both physical and digital security across several categories: hardware manufacturers (locks, alarms, cameras), software developers (video management, access control), service providers (monitoring, maintenance), cybersecurity specialists (network protection, data security), and integrated solutions providers that combine multiple approaches. Some focus on residential markets, others on commercial or government clients, creating a diverse exposure to the entire security ecosystem.

15 handpicked stocks

Peace of Mind Portfolio

Invest in the companies securing our homes, businesses, and digital lives. This collection features stocks carefully selected by our analysts, focusing on leaders in security technology with consistent demand and growth potential.

Han Tan | Market Analyst

Updated 2 days ago | Published at June 18