What do Bill Gates and Warren Buffet have in common? Other than being the two richest men in America; they love trash.
That’s right, hefty bags full of cereal boxes, half-eaten chicken bones, used coffee grounds, and that junk mail that you should have recycled is big business. How big? Waste management is a $50 billion per-year operation. Americans compile 200 million tons of garbage per day, or approximately 4 pounds per person per day.
We throw out more trash today than any other time in history, and we will only continue to throw out more. Think about it, the garbage industry is not going anywhere. You want a business with consistency-look no further than your own waste basket. Does your trash need to go out?
There is little competition in waste management. It is extremely difficult to open a landfill. As the saying goes, “not in my backyard.” No one wants a landfill stinking up their community, and your neighbors and local representatives are going to throw everything but the garbage disposal at you to keep it from happening. Competition? Good luck.
And guess what, neither Microsoft nor Apple is going to make technological advances in garbage retrieval. Until garbage eating robots roam the planet, count on waste management to pay out consistent, sustainable dividends. Just ask the two richest men in America. They’re not throwing away money.
“I’m in the waste management business. Everybody immediately assumes you’re mobbed up. It’s a stereotype. And it’s offensive.” Tony Soprano
(Photo by D’Arcy Norman)