One of the more unusual investment themes of recent times has been the rise of non-fungible tokens (NFTs). Many commentators derided the $41bn (£31.5bn) spent on them in 2021 but for those in the know, the value was clear. It was – and still is – all about the community. If you owned an NFT it gave you the right to attend events with other owners of the NFT and perhaps bond over the criticism you receive from the rest of the world.
- Strong cash generation
- High return on equity
- Strong brand helps pricing power
- Increasing revenue from IP licensing
- Rising wage inflation
- Cost of living might lower demand
- Slowing revenue growth
NFT creators weren’t the first entrepreneurs to tap into the value of a shared sense of identity afforded by a minority pursuit. Games Workshop (GAW), which was founded in the 1970s, created the fantasy tabletop-based game Warhammer in 1983. To play the game, you must purchase and paint miniature models. The Games Workshop stores provide a physical space for gamers to meet and play with each other.