3 Companies with Businesses That Might Never Be Obsolete

Warren Buffett has become arguably the most celebrated investor globally by investing in companies in “boring” industries such as insurance, banking, railways, chocolates, and more.

He has even publicly stated that industries such as technology are outside of his circle of competence and he rarely invests in companies belonging to that space as a result.

There is a reason why he prefers investing in “boring” industries and it is important for investors to note because it is also what has made him so successful: These “boring” industries have basically stayed the same for decades. In other words, they have business which face very low risks of becoming obsolete.

Comparing 50 years ago to today, individuals and corporations still need insurance; they still need loans from banks too. Goods still need to be transported on trains, and chocolates are still an irresistible dessert for many.

If you are planning to follow in Buffett’s footsteps, here are three companies in Singapore that might not face obsolescence anytime soon.

Money will always be money

Banks are an important part of a well-functioning economy as they are a conduit through which capital can be channelled from savers to other individuals or businesses to fund growth.

For this reason, DBS Group Holdings Ltd (SGX: D05), the largest bank in Southeast Asia, stands a good chance of surviving the next few decades and more as long as it continues to be managed in a prudent manner. There are simply no real compelling reasons for the bank’s business to be disrupted.

Even the Egyptian Pharaohs know

The history of alcohol, in particular beer, dates back over 5,000 years ago to the Egyptian Pharaohs.

Today, beer is still going strong and it has benefitted Thai Beverage Public Company Limited (SGX: Y92), the largest brewery in Thailand. Having the largest market share for a product that has been enjoyed for 5000 years in a country known for its friendliness to tourists – Thailand – might help Thaibev fend off any threat to its business for many years to come.

Tell me where I am going to die so I won’t go there

The medical industry is one which people wish they would never need… but it’s still a necessary industry.

Demand for medical services, at least in Singapore, has a strong tailwind for growth: As the population increases, grows older, and beocmes wealthier, the demand for quality medical care would likely grow in tandem as well.

As one of the fastest growing medical groups in SingaporeRaffles Medical Group Ltd. (SGX: R01) may just stay in business for a long time to come.

Foolish Summary

Although each company is still subjected to the risk of losing out to competition within their own industries, the demand for the products and services from those industries would likely still be around for many years from now.

Investors might view these industries as “boring,” but in investing, there’s plenty of gold to be found in “boring” places.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn't own shares in any company mentioned.