The coming regime shift towards capital-heavy companies
15th JUN. 2021
‘Capital light’ business models have dominated in recent years, but ‘capital heavy’ businesses should gain in the new regime, driven by short-run capacity and 4 longer-run structural themes
The shift towards capex heavy business models will initially be driven by sectors starved of capital over the last 20 years, thanks to reshoring and infrastructure spend. Longer-term it could be nascent technologies required for climate transition and to secure geopolitical leadership that deliver increased returns to investors from ‘capital heavy’ companies.
Full FT column HERE (FT subscription may be required)
For a copy of the full-length ASR research note, Equities 2025: investing in capex heavy businesses :