How investors can cash in on undersea cables

Undersea cables are in demand as the renewable energy boom has sparked a race to rewire the world

Scuba divers install undersea cables for research purposes
(Image credit: Getty Images)

Markets dominated by an oligopoly of firms are rare. Those dominated by an oligopoly with over a decade of revenue visibility are even rarer. So when they appear, investors should leap at the chance. Such an opportunity exists in the large ultra-high-voltage cable market. The market for these cables has become dominated by a handful of European firms. 

Over the past decade, these companies have crafted a competitive advantage, flying under the radar of regulators and competitors in a relatively boring and overlooked industry. In fact, the industry barely existed a decade ago. However, it is now growing at such a rate that these firms have accumulated order backlogs into the next decade, and there is no sign of demand slowing down before the late 2030s.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.