We recommend investing across active and passive leisure. Ultimately, the best investments may turn out to be what we refer to as multiline leisure companies. These are firms that offer both immersive and passive leisure experiences. They grant investors the potential to participate in both fast growth and higher margins as demand for leisure activities grows.
The downside of all this growth in leisure activities is that competition for our leisure time and dollar is increasing. Consumers have more choices and some experiences will lose share. The fastest growing industries might not have much pricing power.
Fully immersive experiences, like virtual reality could have more pricing power than activities that require less attention, like posting on social media. However, activities that can be multitasked may grow much faster. Some activities, like social media, are hybrids and can be active or passive, depending on the context.