G8 Education: Why we should start investing in the childcare sector in FY24
Marc Kennis, September 1, 2023
G8 Education is a good way to play the Childcare thematic
Our own Stuart Roberts details the value in investing in the childcare sector, alluding to the increasing support from politicians and high demand due to the rising population. Stuart says that Australia’s birth rate, although currently at its lowest in some time, still compares favorably to other Western countries.
He highlights subsidies for childcare as a political ace card, suggesting that all parties want to address it. The current government has even commissioned the Productivity Commission to study potential improvements. Internationally, he mentions that countries, such as Norway and Sweden, spend more on childcare, leading to greater economic participation by women.
Stuart suggests the childcare sector as a lucrative investment and talks about G8 Education (ASX:GEM), which currently operates around 500 centres nationwide. He also mentions that while the public sector intervention isn’t as robust as in other countries, the private sector could be the solution. He concludes by considering the potential risks, such as increased competition. Despite this, investing in G8 Education, which is currently undervalued, appears to be worthwhile.
Watch the entire video below!
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Stuart talks about the Childcare sector and reasons to invest on AusBiz
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