My final pick is an American pastime that won’t go away despite what naysayers think, and I’m not talking about baseball.
Movies, whether watched in the theater or at home, are a staple of everyday life. Seventeen movies generated domestic box office revenue in excess of $100 million this past summer; add in a very healthy international market, and you have a lucrative business.
I’d much rather own a movie theater or film studio than a commercial airline. Some people might never get on an airplane, but almost everyone has gone to the movies. Just look at the success of Alamo Drafthouse, which has grown from a single, repurposed warehouse and has now expanded into eight states. Unfortunately, it’s not a public company.
However, Cinemark (CNK), which has industry-leading operating margins and is the third-largest chain in the U.S., opened its first “Movie Bistro” on Aug. 30, providing theatergoers with a similar experience. I expect this to become a big part of its future growth.
And the best part? None of that is predicated on what’s going on in Syria.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.