“In this world nothing can be said to be certain, except death and taxes” – Benjamin Franklin’s famous quote is mentioned regularly when investors discuss the merits of investing in InvoCare Limited (ASX: IVC).
InvoCare owns and operates funeral homes, cemeteries and crematoria around Australia, New Zealand and Singapore. It is Australia’s leading operator and owns some of the most well known and trusted brands in the sector including White Lady Funerals and Simplicity Funerals. Interestingly, InvoCare has moved to expand its operations into the much larger and more lucrative US market.
There appears to be a perception in the market that the defensive nature of this funeral business means that companies like InvoCare will always prosper despite constantly changing economic conditions. And while this is true for the most part, there is no such thing as a guaranteed return in the stockmarket and even the most defensive companies are not immune from this.
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