Nostalgia

 I've noticed this around investments, but it's also a general observation that nostalgia is a powerful feeling.

People like me, in their 30's and even older, long for what they liked in childhood. Most people listen to music they listened to in middle school and high school. I like to eat Asian foods that I ate in childhood. I still really enjoy Pokemon and Magic the Gathering games that I learned when I was a young child.

From the investment context, I've noticed that video game companies like ATVI and EA are somehow still selling games like COD, Rockband, and the sports2k games. People still play Counter Strike and Smash, even though those are games that are 20 years old. Disney is another great example that bought Lucas Films and I've talked to people who all agree that the new Star Wars films are not up to old standard, but we watch them anyway probably because of nostalgia. 

I used to think that it is fine to neglect young people from an investment context because most people accumulate wealth in their 30's through 60's. But to truly think long term, I think capturing the mindshare of young people. An example is how the NBA streamed games for free in China for decades and now the NBA is super popular in China because it was one of the few things you could watch in China growing up. Disney captures the mindshare of children, and parents bring their kids to Disney World and continue the cycle. A company like Allen Edmonds seems to be having trouble marketing to young people, partially because formality is going out of style, but also because of their image. LVMH on the other hand, has figured out ways to attract young buyers and doesn't seem to going out of style. 

And has a corollary, many old people are stuck in their ways. I don't change my credit card even though I should. I barely want to call Spectrum to lower my cable bill because I'm too lazy to threaten leaving and deal with the hassel. There are still many older women calling in to buy things on QVC and the Home Shopping Network.