The Economics of Gen Z
October 05, 2022 |
Craig Ditchfield

Introduction and health warning:

a refreshing conversation with Guy Spier during my internship at Aquamarine Capital, we discussed what it is I would like to write my white paper about. With relatively little discussion on the direction of the paper, the overarching theme was “I want to know how I can make money, or save money.” This paper plans to explore how this might be done in the changing economy soon to be engulfed by Gen Z.

I am no expert on human interaction, nor valuing businesses. Hence, I will not try to pin down individual tickers in which one should buy, however, I will try to direct minds to industries and use businesses in the said industry as examples.

However, I am part of Gen Z, and would like to think I have a grasp on what I and my peers do, value and interact with. Thus I would like to think I am not walking into this blindly, yet by no means have my eyes fully open. Therefore if there is anything you would like to discuss while reading this whitepaper please reach out with feedback and insights, such that I can revise the paper.

The Imminent Envelopment of the Economy: It is predicted that by 2030 Gen Z will be earning the most of any current generation, accumulating $33 trillion a year (27% of the global income) allowing them to have great influence over the global economy. 32% of the current global population was born between the years 1997-2012 (2.5 billion people), within this nine out of ten members of Gen Z live in Asia, Africa and other emerging markets. India accounts for around 20% of all members of Gen Z and 60% of the African population is represented by Gen Z, continuing the trend of eastern economic expansion.

To add to this, 75% of the “zoomers” already in the workplace say they prefer hybrid/remote working, changing the landscape of work culture. These all show the effect Gen Z is having on the world, and the development of a new economy, in which office culture, national economic powerhouses and discretionary income may shift.

But even before that, Gen Z have grown up in a rapidly changing world, where they have been the first generation brought up with technology, witnessing the outcomes of two once-in-a-lifetime financial crises, a pandemic, the war on terror, a rise in focus on environmental sustainability and the fight for equality. These events have gone on to shape the way in which the generation perceives the world, their morals and the way they mean to work.

Buy now pay later: The new credit structure, which has become more prevalent since the early 2010s, gives the ability to purchase goods and pay off the debt over a greater period of time, with an effective zero-interest loan and forgiving repayment charges. BNPL hit $100 billion in sales in 2021, up from $24 billion in 2020, and is expected to continue to grow with a CAGR of 26% until 2030 with $680 billion expected to be spent through BNPL by 2025 accounting for 12% of all eCommerce sales. Currently, 2 out of every 100 dollars spent online is subject to BNPL payments. With eCommerce consumption predicted to hit $5.5 trillion by 2026 (27% of the retail market), BNPL expansion will go hand in hand with the growth in online shopping. This growth in eCommerce represents a 2.2 trillion dollar jump from $3.3 trillion spent online in 2022. 36% of B2C BNPL is due to Gen Z consumers, hence the growth in Gen Z discretionary spending will complement the industry. Equally, B2B BNPL is currently predicted to be a $1 trillion dollar industry, showing it isn’t a purely consumer-based industry.

Klarna, Afterpay and Affirm are currently the three biggest firms dealing purely in the BNPL industry. All firms offer loans with 0% interest, however the likes of Affirm and Klarna sometimes have a range in which interest can increase. Klarna is currently the largest global BNPL provider with Affirm being the largest in the USA. Klarna provides the ability to make payments for up to 36 months, with Afterpay having the smallest duration of a loan, in which it must be paid in six weeks. However, Klarna and Affirm have moved into the B2B BNPL industry as well, through Klarna acquiring Billie and Affirm being bought by Block. They differ in late fees as Affirm punishes users by decreasing their credit scores, Afterpay may bill you 25% of the original purchase and Klarna offers a standardised $7 surcharge. The biggest difference however is that Klarna can offer finance up to $10,000 dollars a month, Affirm with up to $17,500 total, and Affirm provides a $500 maximum. Affirm is partnered with 102,000 retailers, Afterpay with 122,000 retailers and Klarna with over 400,00 and, as 90% of BNPL sales are due to retailer partnerships, the ability for a firm to partner with retailers and those with many transactions will give a competitive edge. Hence the number of partnerships may not be the whole picture, as Affirm has the least partnerships but is in business with Walmart and Target. Each firm also manages risk and exposure differently with Klarna doing soft checks on borrowers and approving each transaction, Affirm performing soft checks too with no approvals, and Afterpay sometimes doing soft checks on new customers.

These firms have had great success during Covid but now stock prices have dropped 75% (Affirm) and 57% (Afterpay) YTD due to the worries of regulatory pressure and decreased use post-Covid. Equally, Klarna, which did a round of investing giving them a valuation of $46 billion in 2021, is now doing another round which would value the firm at $15 billion a year later, although this is yet to be confirmed. This may be seen as the stocks being on sale or a fundamental flaw in the business practice.

Each nation is seen to have its own BNPL firms, such as India Paytm with 350 million active users, China Alipay and WePay with 1.2 billion and 1 billion active users respectively, and Indonesia’s Grab with 670 million users. However, these websites don’t solely provide BNPL products as other sites do, but do show a global BNPL introduction.

To add to this, the introduction of BNPL to “super-apps” such as Apple, creating a new BNPL service through Apple Pay, gives validation to the model as a payment service and illustrates it is a feature of business that will continue to be implemented, not just an individual service one may find through outsourcing payment schemes. PayPal too has introduced its own BNPL products.

However, as of now, two-thirds of all BNPL consumers are considered sub-prime. To add to this, 80% of current consumer BNPL is used to buy items of clothing, which are discretionary goods, hence may mean economic slow down can weaken the industry as disposable income shrinks. Uniformly 42% of all current loans have had late or overdue payments. This current business structure has been able to succeed due to prolonged low levels of interest, which may cause struggles for the industry due to the current economic climate. Now a shock to the system or the ever-increasing interest rates may mean consumers are not able to repay their debt. This too doesn’t only create waves in the system in which BNPL companies suffer but can cause liability to distributors and producers. This greater risk is not one which people can see from a micro perspective thus, while evaluating firms, one should interpret the jeopardy BNPL could serve to any firm individually due to greater exposure to the risk of default, even if they themselves do not issue the payment scheme.

And in many cases, BNPL companies aren’t the lenders themselves—they offer technology services but rely on bank partners for the loans. Hence there is an equity tranche that businesses may use to prop up balance sheets and the risk may be outsourced to other institutions. This shows that BNPL shouldn’t be looked at singularly by the lender but one should identify if the business they deem investment worthy offer BNPL, as it could be a source of risk in a business structure. Equally the other side is that retail stores using BNPL structures could meet with the benefits of greater consumption due to the ease of purchasing BNPL offers.

To add some validity to the sector and its ability to become less risky as an industry, there will be a regulatory crackdown, in which the UK has said stricter rules on the sector will be enforced by 2023. This is likely to slow the growth of pay-later lending, due to the greater clarity firms must display while issuing loans and the greater understanding firms must have of customers’ financial ability to repay loans.

ESG: Due to the direct effects of climate change upon Gen Z, they are more likely to support and purchase from firms that value the environment. 62% of Generation Z are more likely to purchase goods/services from sustainable brands and, as a cohort, are willing to pay 10% more for goods produced in a sustainable manner.

Hence one must not just look at the fundamental of the firm’s business models but equally toward their sustainability missions and ability to align growth/profitability with eco-friendliness. Businesses continue to emerge or become more prevalent due to this consumer trend, which will make way for new fashion companies, food products, and electrical companies to tend to the future needs of the sustainable era.

Tentree, a clothing brand, became a star among Gen Z idealists with their clothing campaign in which they would plant 10 trees for every item bought. This resonated with the younger generations, with the company garnering 2.2 million followers on Instagram. Mainstream brands too have followed in the footsteps of sustainability with the likes of H and M conscious clothing line, made of sustainable materials, and Adidas’s famous boost soles being made from recycled plastics. These giants becoming sustainable, however, is a move all brands must follow, the firms in which a rise will be seen are those who now supply recycled polyester and materials to the firms. Renewcell has a 10-year contract with H and M to produce circulose, a material made from 100% textile waste. They are yet to have a profitable quarter, however; start-up and R and D costs for sustainable firms are high. As seen by Tesla, it took 10 years to turn a profit, however, due to Renewcell being backed by EIB loans and sustainable subsidies they will continue to trend towards alignment between profitability/sustainability.

However, the biggest change in the sustainable clothing industry has come through the rise of resale apparel, with the global market revenue of $2 billion in 2012, up to $14 billion in 2021, and expected to exceed $51 billion in 2026 (this doesn’t include thrifted or donated clothing). The resale industry has grown 21 times faster than the retail industry year on year. The rise of Depop, Grailed, Goat and eBay is showing resale fashion being integrated into different segments of the fashion industry (Vintage, Luxury, Shoes and everyday items). 90% of Gen Z are willing to wear and buy second-hand items, with Gen Z being the generation buying the most resold and thrifted items of clothing.

The likes of plant-based substitutes such as Beyond Meat, Quorn and Impossible Foods, have catered to the ideology of not killing friends for food. Gen Z has the highest prevalence of vegans/vegetarians only after Millennials, with around 7.5% of American Gen Z being non-meat eaters. The substitute meat market did $4.2 billion in sales in 2020 and is expected to exceed $28 billion by 2025.

Another industry on the beckoning of change is car manufacturing. Firms are battling to gain the greatest market share in the industry, as nations put sanctions on diesel/petrol cars. In the UK by 2030 diesel/petrol cars will no longer be allowed to be sold, and by 2035 no more hybrids will be sold. Gen Z has begun to buy their first cars and, with the generation becoming disenfranchised with dealerships and finding the difficulty in consumption to be a hurdle, they care more about ease of consumption than previous generations. 45% of Gen Z found working with car salesmen frustrating but equally found buying cars online 22% more difficult than previous generations. 81% of Gen Z research vehicles before purchasing, which is the highest percentage of any generation. There has now been a move east in car consumption among Gen Z as they find Asian cars the most durable at the best price range. 14 of the top 20 car brands bought in the USA among Gen Z come from Japan and Korea, with the likes of the Honda Accord and Civic being the most driven cars by Gen Z, whereas Baby Boomers and Gen X preferred a Ford. This change is also due to the Asian ability to produce cheaper electric vehicles, which 41% of Gen Z want their car to be.

However, these changes don’t only illustrate business opportunities in the industry of cars, but equally in those manufacturing/mining goods which will be needed to produce these goods. The current “big three” in the lithium-ion industry will continue to see gains due to the increased demand for lithium and a decrease in supply. The changing car market doesn’t only see the ability to grow for electric vehicles but second-hand car resellers as 59% of Gen Z drive second-hand cars. There are now equally firms committed to making the sale of cars easier such as CDK Global which creates software to decrease difficulty while consuming, due to the issues Gen Z face while purchasing cars.

The generational push for sustainability is equally seen in the workplace. 64% of 18 to 22-year-olds want their employers to act sustainably and with 50% of Gen Z saying they are unwilling to work for a firm that doesn’t share their values, firms may lose out on talent if unable to align with sustainable practices.

Gen Z has also proven their commitment to change through its impact investing. 80% of Gen Z refer to ESG while making investment decisions. With green/sustainable investing being the biggest trend among Gen Z in 2021, it is apparent that firms that make an impact are favoured by the generation. 40% have invested in companies with the sole purpose to make a change in environmental protection. This shows a changing landscape in which the generation views financial markets as a place to make an impact rather than just to make money.

However, for green investments to be effective, one must choose carefully which nation to invest in. Nir Kaissar effectively summed this up through the illustration of China and Russia. These two major economies would seem unlikely to uphold sustainability agreements, as a nation denying citizens of their human rights is unlikely to legitimise sustainable practices. Hence one must consider the nation in which a sustainable firm is based, and where they may be able to expand. Currently, the Nordic countries and western Europe are prioritizing it most, with their populations caring most about sustainability.

However, one thing Gen Z will not stand for in a sustainable environment is greenwashing. They value long-term change rather than small blasts of effort to try to show they are sustainable rather than implementing real change. The likes of Volkswagen felt the full force of this when the Dieselgate scandal unfurled in 2015, in which the stock fell by 30% due to their greenwashing deception. Due to 96% of Gen Zers equally taking time to time to read reviews or recommendations on products it becomes less likely firms will be able to pull the wool over their eyes.

Retail investing: The prevalence of Gen Z’s interest in investing has been seen due to their growing involvement in the markets, especially during Covid. With an estimated 70% of Gen Z already investing, they already seem interested in finance. However, there has been a global shift in how this generation learns about finance compared to that of other generations. It is reported that 34% of Gen Z learn about finance through TikTok and a total of 46% learn through various forms of informal social media posts. This may lead to greater shifts in volatility and an increased lack of rationality.

There can be seen to be too much unsustainable optimism and unjustified pessimism as 31% of Gen Z believe they can explain the stock market, yet 39% of Gen Z trade options. And a survey showed that the financial concept that Gen Z understood least was risk management. The concept of margin of safety is not commonly known among the generation.

The effects that crypto, influencers and decade-low interest rates have had, have created a generation with the mindset of irrationality and the goal to make a quick dollar, rather than seeing through long-term investment strategies. This can be seen by 16% of Gen Z being day traders compared to an estimated 1% of millennials.

Although the rise in retail investors and day traders may not directly impact oneself, the greater irrationality being pumped into the market may cause negative impacts on one’s portfolio if a tab isn’t kept on the latest trends in the meme stock market and kept in touch with what Gen Z may irrationally invest in.

Reddit: The protection of one’s fund from the Gen Z effect can be effectively seen through the example of the GameStop, AMC and other Reddit short squeezes. There was no reason to believe GME would be pumped unless you were a prolific Reddit reader. It would be illogical to try and persuade that nuggets of gold on making rational money may be found on Reddit, however, it isn’t irrational to suggest there are lumps of coal strewn in subreddits on the platform. The basis of getting out of positions in seemingly strong positions can be heavily emphasised through examples of Reddit’s madness of crowds.

Paul Tudor Jones effectively expresses this through “get out, because you can always get back in.” If there is a movement on Reddit, or Elon Musk irrationally says something on Twitter, the safer bet is to back out of the trade, and if the apparent irrationality subsides to buy back in.

The Elon effect is seen through Tesla’s market value losing 13 billion dollars after his tweet “Tesla stock is too high” but equally firms indirectly feel this effect such as Gogo Inc (in-flight broadband provider) stock dropping by 5.7% after Elon simply tweeted that Stalink would launch their own satellites which would provide broadband. Equally, the Etsy stock price jumped after his “I love Etsy” tweet. Thus if stocks in one’s portfolio are mentioned by Musk it may be effective to leave and rejoin due to the volatility Musk can cause as Gen Z take action due to his words.

To show another example of this irrationality the recent story splattered across timelines of a university student (part of Gen Z) garnering 110 million off a bet on Bed Bath and Beyond, although seemingly a beacon of hope for many money-hungry people of Generation Z, should be a story of how not to operate in markets. Throwing 27 million of friends’ and family’s money into one long position is a horror story which has now created more people who will decide to throw their net worth into seemingly crazy pump and dumps.

There are some great resources which shouldn’t be used to gain insights into potential buy-in options, but reasons to get out of investments on Reddit. For instance, through a quick Google search, one can find the most spoken about tickers, or stocks on Reddit. If one of those is held in your portfolio a red flag should occur. There is never a reason one should resonate with a group which considers their investment strategies as “apeing” into a trade, or “YOLOing.”

Other interesting resources to look at are the Influencer Economy ETF and Becky ETF, which track brands that influencers are promoting most, and shops that the middle-class women of America spend most of their money on. Although once again not a source to use as investment advice it is another way to track what Gen Z will be viewing through social media, and where a group of people with great disposable income from the rising Gen Z spend their money.

It is not irrational to hold stocks which have fundamental great business practices, or even lousy ones that BBY or GME could have been said to have had, but if these stocks begin trending on Reddit or other platforms in which investing “gurus” begin to express opinions with seemingly a lack of investment practices, Paul Tudor Jones advice should be taken on board

Technology: It is indisputable that technology affects nearly everyone’s life, and with Gen Z having grown up and being the most technologically advanced generation it will certainly integrate further into our lives. With a quarter of Gen Z reported to spend 10 hours a day on their phone, this inclusion of technology into one’s life seems to be speeding up rapidly with the new generation.

The recent trends have been in Web3 in which decentralization and the blockchain have become more prevalent. With the likes of Web2 FAANGS “owning” the internet, the Igeneration has pushed further for decentralization, thus the future of the internet is difficult to predict. Yet there are trends which have been recently adopted which can see who the next big players in the market will be.

Web2 became the cultural introduction of daily use of the internet and technology, and although often out ruled by many mainstream sources of information and the older generations when first envisioned, it would be foolish to not see precedent to believe that the internet will evolve. As previously seen, these web companies can become the most profitable and largest businesses in the world. Before Web2 the likes of Bill Gates were ridiculed for their ideas, yet now Microsoft is used by billions on a day-to-day basis. This rise of technology in Web2 was abundantly due to the basis of ease of use, and in Gen Z it is seen that the compatibility of user-friendliness is at the forefront of adoption, hence if a new product isn’t intuitive, and can’t provide a wide range of information alongside ease of use, it will not be picked up.

To add background to the ideas of what technology and Web3 should look like, we can see the disapproval of Gen Z of the ability of social media platforms to block individuals at a moment’s notice, tailor advertisements to individuals and the idea of decentralising money as people fear more and more about global governmental competency. Although I do not wish to impose my opinions on said topics nor believe all are to be validated, it is crucial to understand why people see these as issues, and how this could shape the technology space.

The likes of Donald Trump, a former US president, was denied access to share his opinions online through the likes of Twitter deactivating his accounts. Equally recently Andrew Tate, a newfound internet star, got his Twitter, Instagram and YouTube revoked in one day, which can allude to the fact these conglomerates work together to shut people down, which Gen Z, although not entirely backing the individuals nor their ideologies, find suppressive as it is a limitation on freedom of speech. Even through the likes of YouTube, many revered and famous stars get strike warnings, videos taken down, and even, such as SteveWillDoIt, their whole account banned.

The traditional model in which one consumes television has been of constant change. The likes of TV and DVD have diminished with the rise of streaming platforms such as Netflix and Disney. This push away from traditional forms of media was due to ease of use but equally the access that these subscriptions obtain. The model of consumption has been challenged by the ideal of purchases giving the consumers access, rather than ownership. But yet we have now seen troubles in these streaming services, as the likes of Youtube and Twitch provide this access to mass media without the inconvenience of a monthly fee. In the first quarter of 2022, Netflix saw its first loss of subscribers of 200,000 people, and in the second quarter an additional million. Yet YouTube garnered 2.6 billion users monthly in 2022, compared to 1.9 in 2021. Equally the likes of Twitch saw a 45% increase in viewers in 2021, and now in 2022 hosts the most monthly active users the platform has seen at 140 million people tuning in monthly into the 9.2 million active streamers. The two biggest streaming/video producing platforms have seen unhalted growth, while the likes of Disney+, Netflix and Hulu have seen a decrease in subscriptions, and have been lowering their estimates for future growth. This can emphasise the point that Gen Z is no longer as willing to pay for traditional sources of media when free platforms produce content they must not even have to pay for the publication of.

An example of a Web3 peer-to-peer platform with no kill switch is Rumble, a new streaming platform with individual sovereignty in which users have the right to manage all of their content and monetization. They have created a collaborative medium with 44 million monthly users in which one can express themselves how they want, without the option of being banned.

Equally even in social media, the dynamics are shifting from the more stale and slower likes of Facebook and Instagram to TikTok. In the last year and a half American TikTok users grew 5.5 fold. They are predicted to garner more monthly users by the end of 2022 than Instagram currently has. These indications show that the entertainment industry is evolving and that the traditional sources of entertainment which have been around for years such as TV and Facebook/Instagram are being challenged by users who see the value in other sources of media that create access for free, and have a dynamic platform rather than one which is more static.

However, where Meta is slacking with Facebook and Instagram, they are trying to corner a market which is Web3, and the metaverse. In a bold move, they changed the name of the parent organisation, to show their dedication to the metaverse. Although seeming like science fiction, the Covid Pandemic has accelerated the idea of working and interacting through VR headsets and the prevalence of at-home work. Having spent nearly two years working from home through computers, people have begun to not see the worth in travelling into offices when not necessary. 75% of Gen Z prefer hybrid or remote working, which gives worth to Bill Gates’s statement that he believes that working life will be transformed into portals such as the metaverse in the next 5 years. And to add to this ⅔ of Gen Z men say gaming is a core component to who they are, hence adding another level in which the metaverse is to be used. The rise of Oculus Rift and other VR modes of gaming has made the idea of playing video games in a 3D platform a greater reason to back the metaverse. If these two concurrent ideals in which major components of Gen Z life are to switch to virtual reality, then businesses dealing in AI technology, VR production and software building seem like an industry which will likely trend to the forefront of the business world.

Value of Goodwill: Seen now more than ever Goodwill is present in Gen Z purchasing choices, as they perceive standards of customer relations and faces of a firm as a greater reason to purchase from a firm rather than product or quality.

The start of this business model can be seen with the Jordan brand, however, since then the greatest advances in this model have come from Gen Z backing brands which may not have a comparative advantage but beat the enterprises which seemed unchallengeable.

The influencer model: Gen Z takes great interest in the lives of others, especially “influencers”. The major distinction between Gen Z and their predecessors is that the biggest individuals to impact their lives no longer tend to be major movie stars or singers, but now are popular YouTubers or Instagram stars. They have broken into mainstream media and garnered the attention of Gen Z more than any other cohort of celebrities, as seen through influencer boxing matches, such as Logan Paul VS KSI being in the top 5 highest-selling fights of all time.

Gymshark tackled the likes of Nike and Adidas in the gym clothing industry, through the use of influencers. Their clothing brand started by a man and his brother from their garage could become one of the biggest gym clothing brands today. What Ben Francis (founder) leveraged was the ability to advertise for low costs by sending items of clothing to individuals big in the gym hemisphere, who were not mainstream athletes who would simply cost too much to access.

Due to him relentlessly sending items of clothing to major YouTubers and Instagram stars, he was able to harness the fame of others to put his clothes in front of the eyes of susceptible customers by creating an aura around his company due to dressing those who have a loyal fan base in items of clothing which he had made. This model of accessing influencers to dress in his clothing put a spotlight on the fact that people’s heroes and those they look up to wear certain items of clothing which their followers would be keen to wear to be more like the ones they look up to.

Hence the arbitrary idea of “influencers”, who many generations beforehand see as individuals not providing much value, has helped create a brand worth over $1.3 billion.

However, this industry is not just illustrated through the likes of Gymshark. If one keeps a keen eye on what influencers are promoting, wearing or doing they can see what Gen Z may begin to purchase, follow or value. The Influencer marketing industry is expected to grow to $16.4 billion dollars in 2022, a 30% increase from 2021. The ROI on marketing through Influencers is on average $5.68 per $1 spent on advertising.

The face of a firm: The influencer model leads right into another model in which firms which shouldn’t necessarily succeed, do outstandingly in comparison to other firms. If those who may lead the company are well known to the greater society and can gain a cult-like attraction to themselves, firms can positively benefit from the goodwill of the people. Examples are brands started by the likes of the Kardashian/Jenner family, Elon Musk or other social figureheads which captivate audiences.

Equally, through this presence of influencers being able to help other brands, new businesses may emerge which can become highly successful. Although many are not public companies yet, the manufacturers of influencer products, such as KSI and Logan Pauls’s new drink Prime Hydration (manufactured by CONGO alliance beverage distribution), Sidemen clothing, or management teams such as Millennial Entertainment will begin to see success due to the fame of these individuals. The influencer management industry grew by 30% through 2021, illustrating new businesses entering the market to help influencers manage brand deals. This is another instance of where a firm’s individual business structure may seem dissimilar to others, but due to their partnership and production of these individual goods, will see accelerated growth as fans buy products from their idols, rather than buying goods based on merit. Hence uninteresting firms can gain exceptional growth as they are the backbone of a product with someone else’s face on it. In instances such as Prada, where they splatter the face of celebrities on their brand, these firms create products, which influencers put their face on, creating a business model which has been around for a long time but takes on a new spin of who represents them.

Connection: Amazon has been the leading e-commerce platform and once cornered the market in the online purchase of goods and food for one’s pets. It seemed whimsical to think a firm may be able to challenge Amazon in that trade, however Chewy was able to beat Amazon to become the largest seller of goods in the pet industry. This however was once again not due to superior quality or slimmer prices but the human element.

Chewy was able to garner the business of millions of pet owners through their customer service as on one’s pet’s birthday, or when they became ill/died, they would send personal often handwritten letters to the owners to congratulate or console them.

The little human element was able to amass customers due to the feel of a personable company and lead people to become repeat purchasers, as they felt the company cared for them, and their pets which people consider as family.

These both show a psychological switch in generational priorities, as Gen Z has been seen to care more about fairness, others’ perceptions and how they feel about their purchasing choices. Hence it leads to another level of inquisition into a firm’s ability to grow and attract consumers. What some may see as irrelevant and may not understand the impact of little changes to garner the attention of the new generation, has quickly created firms which challenged markets with few but big firms.

Final Words: Although not every trend of Gen Z has been explored in this paper, I believe some of the biggest and latest ones have been discussed. They have experienced some of the biggest shifts in global perception where equality and climate protection are at the forefront of many minds, with technological improvements occuring daily. By looking through the lens of Gen Z it provides the access to understanding what the future of industries will look like, and where people will begin to spend more money. None of the individual firms should be taken as direct investment advice, however, looking at them and the industries they reside in can provide the ability to find stocks to grow one’s capital, as Gen Z continue to shape the world through their values and their consumption choices.


You can access the White Paper here.

I’m a Zurich based investor. Since 1997, I’ve managed a privately offered investment fund known as the Aquamarine Fund.

I am also the author of a book titled The Education of a Value Investor, which was published in 2014.

As I wrote in my book, we are all a work in progress. This site documents my ongoing quest for “wealth, wisdom and enlightenment”.

I have created a /now page – inspired by Derek Sivers

I’m a Zurich based investor. Since 1997, I’ve managed a privately offered investment fund known as the Aquamarine Fund.

I am also the author of a book titled The Education of a Value Investor, which was published in 2014.

As I wrote in my book, we are all a work in progress. This site documents my ongoing quest for “wealth, wisdom and enlightenment”.

I have created a /now page – inspired by Derek Sivers

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