Bullish and Bearish SMB buys
Here are some quick thoughts I have on buying an SMB
Bullish: Sectors I would want to buy
1. Electrician based companies. This is a pretty broad market but I think between electric cars and advancing electric homes this will be a massive growth sector
2. Commercial HVAC companies. Much like the first, I believe there will be increased demand across not just data centers but many industrial buildings as more and more people are using on site servers for AI
3. Electrical infrastructure: Grid upgrades, data centers, battery storage, EV charging, and factories all require huge amounts of electrical infrastructure.
4. Industrial Cooling: Everything from data centers to food distribution
Bearish:
1. Bookkeeping and tax accounting: Concern is that a large company like Anthropic or Ramp just wipes out the smaller players
2. Traditional marketing agencies: So much with AI will be automated only the top agencies will survive the changes
3. Basic recruiting: Top recruiting agencies will keep dominating but the shift with AI will hurt a lot of the lower half of agencies
4. Medical billing companies: Unless you are adopting state of the art AI, many of these will be wiped out