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Hello Crazy Gang,
They say that the population of Britain will grow to give us quite a crowded set of islands in the next ten years or so.
Well, that may cause a bit more road congestion and so forth, but it's possibly good news for share shifters. It means many more customers for the companies we've all invested in.
A higher population means a bigger demand and that means the value of the different companies will rise. Not all of them, of course. This is a very general observation, you understand.
But here's an example of what I mean. The number of people travelling on the railways will increase, and that will raise the profits for railway operators. Same for coach firms. Same for car makers.
Yes I know it's obvious, but that doesn't mean it's not worth saying. Of course, some companies will not increase their profits. This is because other firms will set up to meet the extra demand. In other words, there'll be more competition, And competition drives down prices - and profits.
But the firms which have virtual monopoly will do very nicely out of a bigger population. Yes, we're back to the railway operators. We should also include water companies, electricity suppliers and gas providers.
Anyway, I suppose we're talking a few years before any difference is noticed. But I reckon the aforementioned sort of firm - and a few others, too - will do nicely out of a growing population. And the most successful share shifters always look well ahead. Rocking on!
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