Skills Over Diplomas
Best of
@favoritetakes
+1.4%
since Sep 28
The idea
I think the four-year degree is losing its grip, so I built this around who actually trains and equips the workforce filling that gap: trade schools, tool and welding-gear makers, the distributors supplying every job site, and the contractors doing the hiring. A smaller slice covers the white-collar path without a diploma, through certification and skills-based platforms. I keep some cash on the side and spread it across many names rather than betting on one, since this is a slow multi-year shift, not a quick trade.
What it owns
- These distributors supply parts and materials to tradespeople and contractors on every job, earning revenue tied directly to the volume of trades work being performed. · W.W. GraingerIt supplies maintenance and industrial contractors with equipment and parts, earning revenue that rises with increased activity in skilled trades., FastenalIt supplies fasteners and consumables to job sites, so its sales move directly with the volume of trades work being performed., WatscoIt distributes HVAC parts to technicians and contractors, earning revenue that grows with increased demand for HVAC services., Ferguson EnterprisesIt supplies plumbers and contractors with materials and parts, earning on every plumbing job as skilled plumbers remain in high demand., Core & MainIt supplies parts for water and infrastructure work performed by skilled trades crews, so its revenue tracks infrastructure spending and trades employment., WESCO InternationalIt distributes electrical supplies and materials to electricians and contractors, earning revenue tied to electrical construction activity.27%
- These companies provide certifications that lead to employment in skilled trades within two years, positioning them to capture students choosing career training over traditional degrees. · Universal Technical InstituteIt trains mechanics and technicians through direct certification programs, capturing students who choose skills training over four-year degrees., Lincoln Educational ServicesIt operates trade schools certifying welders, electricians, and HVAC technicians, positioning it to grow as students choose skills over degrees., Stride Inc.It offers career-learning programs in skilled trades for high schoolers and adults outside traditional campuses, capturing the shift from degrees to skills.20%
- Electricians, welders, and mechanics require thousands of dollars in specialized equipment throughout their careers, making these companies essential suppliers to the skilled trades. · Lincoln ElectricIt manufactures welding equipment and consumables, earning more revenue as more people enter welding careers and buy its machines., Snap-onIt sells professional tools to tradespeople, capturing demand from newly trained mechanics and technicians entering the workforce., ESAB CorporationIt manufactures welding and cutting equipment, so it benefits when more workers enter welding careers and purchase its tools and consumables., Stanley Black & DeckerIt manufactures power tools sold to tradespeople, earning more when skilled trades employment grows and workers invest in equipment.19%
- These firms employ tradespeople in growing fields, allowing them to raise prices and margins when labor supply tightens and order backlogs remain full. · Comfort Systems USAIt employs mechanical and HVAC workers at scale, giving it pricing power when labor is scarce and its order backlog stays full., EMCOR GroupIt is a major employer of electricians and mechanical workers, benefiting from tight labor markets and persistent order backlogs., IES HoldingsIt is an electrician employer focused on electrical construction, benefiting from tight labor and rising electrical demand.16%
- These companies provide certifications, credential testing, and skills-based hiring platforms that let office workers build careers without traditional four-year degrees. · Pearson plcIt operates certification testing that employers use in place of degree requirements, benefiting as hiring becomes skills-based rather than credential-based., DuolingoIt offers an English certification test accepted in place of traditional credentials, capturing the white-collar shift toward skills-based hiring., UpworkIt operates a platform where white-collar workers are hired on portfolio and skills rather than degrees, benefiting from skills-based hiring growth.10%
- Cash8%