Fat Profits

Fat ProfitsObesity is a growing global pandemic, the fifth greatest cause of death. Unlike other mass health threats though, the problem is worse in the wealthiest countries. Hey — what a chance to make a buck! A guy could make a killing.

In a Bank of America Merrill Lynch Global Research report, “Globesity – The Global Fight Against Obesity,” Sarbjit Nahal observes:

“Global obesity is a mega-investment theme for the next 25 years and beyond. Obesity may be the most pressing health challenge facing the world today and efforts to tackle it will shape thinking by policy makers and in boardrooms around the world.”

From a press release:

“Medical costs for treating obese patients are 40 percent higher than for non-obese patients. Treating obese patients comes at a higher premium than treating smokers. Obesity adds 50 percent to annual medical costs, while smoking adds 20 percent. High levels of global childhood obesity and growing obesity in emerging markets will further increase global costs.”

Shopping for fat profits? Buy shares in firms that make:

• Pharmaceuticals — anything that treats diabetes or kidney failure

• Health care —  hip and knee implants, patient lifts, bigger hospital beds, wider ambulance doors

Food — edible products that promise “health and wellness”

Commercial weight loss, diet management and nutrition

Sports apparel and fitness equipment

We suggest looking into firms that make plus-sized coffins.


“Fight against obesity is major investment trend – BofA,” Reuters

“Investors weigh obesity battle’s benefits,” John Authers, Financial Times

“Obesity: How a Big Problem Can Lead to Investment Opportunities,” Seeking Alpha

“How the City is making money from fat people,” The Telegraph


Short Link: http://wp.me/p6sb6-dE6

Image by Mike Licht. Download a copy here. Creative Commons license; credit Mike Licht, NotionsCapital.com

Comments are welcome if they are on-topic, substantive, concise, and not boring or obscene. Comments may be edited for clarity and length.

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