Millennials are killing everything. Are you next?

Editor: Philip Ragner | Tactical Investor

Millennials are Killing Everything: Are You Next? A Contrarian’s Perspective

Updated March 24, 2024

In recent years, many headlines have accused millennials of “killing” everything from golf and bar soap to movies and napkins. The narrative portrays this generation, born between the early 1980s and the late 1990s, as a disruptive force upending traditional consumer markets and industries.

Yet, beneath the surface of these sensationalized claims lies a more profound truth that savvy investors and contrarians have come to embrace. As the legendary trader Jesse Livermore once quipped, “The sitting, not the trading, makes the money.” In this spirit, those who can decipher the tapestry of millennial consumer behaviour may uncover a wealth of opportunities, even as the masses lament the supposed demise of once-thriving industries.

Unraveling the Millennial Mindset: A Tapestry of Disruption

“The crowd is untruth,” echoed the ancient philosopher Heraclitus, a sentiment that resonates profoundly in consumer markets. For it is in the collective consciousness of the masses that the seeds of irrational exuberance and unfounded fear take root, driving consumer trends to dizzying heights or plunging them into the depths of despair. With its unique set of experiences and values, the millennial generation represents a powerful force reshaping consumer behaviour, challenging long-held assumptions and ushering in a new era of disruption.

Yet, within this chaos lies a hidden order, a tapestry woven by the threads of changing demographics, priorities, and lifestyles. To unravel its mysteries, one must embrace the teachings of the sages, those who have mastered the art of deciphering the crowd’s ebb and flow. As the Stoic philosopher Epictetus taught, “Circumstances don’t make the man; they only reveal him to himself.”

The narrative that “millennials are killing everything” is a testament to this generation’s profound impact on consumer markets. From the decline of beer consumption and the rise of wine and spirits to the waning interest in traditional pastimes like golf and road cycling, millennials’ preferences and behaviours are reshaping entire industries.

The Millennial Kill List: A Litany of Disruption

So, what exactly are millennials accused of killing? The list is long and varied, spanning industries, sectors, and even everyday consumer goods:

1. Golf
2. Road cycling
3. Movies
4. Napkins
5. Bar soap
6. Beer
7. Vacations
8. Credit cards
9. Homeownership
10. Traditional retail
11. Cable TV
12. Diamonds
13. Casual dining chains
14. Cereal
15. Fabric softener
16. …and the list goes on.

From traditional pastimes like golf and road cycling to everyday household items like napkins and bar soap, the millennial generation’s preferences and behaviours are reshaping entire markets. The beer industry, for instance, has seen a decline in penetration as millennials gravitate towards wine and spirits, while industries like movies and traditional retail grapple with the disruption caused by streaming services and e-commerce.

The Contrarian’s Edge: Embracing Millennial Disruption

“Be fearful when others are greedy, and greedy when others are fearful,” counselled the Oracle of Omaha, Warren Buffett, a mantra encapsulating the essence of contrarian investing. In the realm of millennial consumer trends, this wisdom rings particularly true. **While traditional businesses lament the supposed “killing” of industries like golf and bar soap, the astute investor recognizes that these shifts represent opportunities for those who can adapt and innovate.**

Armed with a deep understanding of the millennial mindset and the underlying drivers of change, the contrarian investor dares to tread where others fear to venture. They recognize that the masses are often swayed by emotion, clinging to outdated paradigms or chasing the latest fad, leaving undervalued assets and untapped markets in their wake.

Seizing Opportunity Amidst Chaos: Capitalizing on Millennial Disruption

In the tumultuous landscape of consumer markets, the wise investor recognizes that the most significant opportunities often arise when the crowd is gripped by fear and uncertainty. As the ancient Roman philosopher Seneca counselled, “It is in times of security that the spirit should be preparing itself for difficult times; while fortune is bestowing favours on it, it is then the time for it to be strengthened against her rebuffs.” While devastating to the unprepared, the perceived “death” of industries at the hands of millennials presents an unparalleled chance for the astute investor to acquire assets at deeply discounted prices or to pioneer new ventures that cater to this generation’s evolving needs and preferences.

The aftermath of the 2008-2009 financial crisis serves as a prime example. In the depths of that turmoil, when fear and panic gripped the masses, those with the fortitude to buy when others were selling were handsomely rewarded. A stealthy bull market emerged from the ashes, arguably lasting until the COVID-19 crash over a decade later. This extended period of growth underscores the immense potential of contrarian investing during market chaos, a lesson that can be applied to millennial consumer trends.

As the legendary trader Paul Tudor Jones once remarked, “The markets are the biggest psych ward on the planet.” By maintaining a rational, disciplined approach and resisting the siren call of herd mentality, the wise investor can capitalize on the crowd’s missteps and forge a path to enduring success in the face of millennial disruption. For those who can embrace the changes ushered in by this generation, the opportunities are vast, even as the masses lament that “millennials are killing everything.”