How to Invest in the Leisure Activities of Baby Boomers
Elizabeth is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
If you were born between 1946 and 1964, you're considered part of the baby boom generation. Doing the math, this makes the "youngest" baby boomer 47 years old, and the "oldest" 66.
According to the U.S. Census Bureau, 25 percent of the total population in 2011 were part of the baby boomer generation. This means more and more boomers will be turning in their Capital One card for an AARP card and its free travel bag for joining.
If only by their sheer size and accumulated nest egg -- this also means baby boomers will be unloading lots of cash on travel and leisure activities.
So, where will they be spending their time -- and their money? And what companies stand to benefit? Let's take a look:
Ancestry.com (NASDAQ: ACOM) - As retirees have more time on their hands, they'll likely reflect on their legacy to their children and grandchildren. One part of this will be an interest in their family history -- and Ancestry.com stands to benefit from this reflection and interest. Ancestry.com currently has roughly 1.4 million paying subscribers, and holds the world's largest online family history search market share. What's in its long-term future? Should the family records of other graying developed countries such as Japan and China become digitized -- and Ancestry.com choose to invest in those international markets, the company stands to increase its revenue substantially.
Amazon - (NASDAQ: AMZN) - Ah, retirement. The time to sit back and relax - and read! Chances are, if a baby boomer hasn't purchased an e-reader yet, such as a Kindle or Kindle Fire, she will.
Barnes & Noble (NYSE: BKS)- While it doesn't have as many features as the Kindle Fire, it's being advertised on television aggressively. Plus, Barnes & Noble dropped the price of the Nook Color from $249 to $199, making it in equal contention with Kindle Fire from a price standpoint.
Priceline (NASDAQ: PCLN) - When asked what people want to do when they retire, a likely response is "to travel." For many baby boomers, travel is considered a necessity -- and a priority. After all, they have the time, desire, and most likely the money to travel. While Priceline may be a favorite among seniors due to its spokesperson William Shatner, travel websites such as Expedia (NASDAQ: EXPE) and Orbitz (NYSE: OWW) will also compete for baby boomer retirement dollars earmarked for travel.
Home Away (NASDAQ: AWAY) - With over 250,000 vacation rentals in places like Hawaii, Europe, Florida, and the Caribbean, Home Away will likely see an uptick in its rental activity as baby boomers travel more. Similar to TripAdvisor (NASDAQ: TRIP) and eBay (NASDAQ: EBAY), Home Away relies on customer feedback to develop credibility with future renters.
Fool blogger Liz Magill does not own shares in any of the companies mentioned in this entry.
