Livewire spoke with Nick Griffin at K2, about the trend of obesity. Nick said The global population is getting fatter every year... it's a time bomb for government healthcare expenditures. He says that K2 are investing in companies who are generating profits by encouraging people to live a healthy lifestyle like Nike, Adidas and Lululemon. Governments are inevitably going to attack this problem via preventative medicine with a range of initiatives to encourage exercise, like compulsory sport at all schools. Nike is our biggest investment in that area at the moment and all of them have significant tailwinds. Charlie Aitken, Managing Director at Bell Potter agrees with Griffin (in a note he released back in August 2013 entitled Diabesity) and recommends buying GI Dynamics (ASX: GID), Mesoblast (ASX: MSB) and Resmed (ASX: RMD) and holding them for the next few years as this theme starts to play out.
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