US Top News and Analysis | Family investors turn to old-economy businesses like dealerships and fisheries to avoid AI disruption

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Family offices are increasingly turning to “old‑economy” assets—such as John Deere and Kenworth dealerships, blue‑fin tuna fisheries, and other asset‑heavy businesses—to hedge against AI‑driven disruption, a strategy championed by Mark Sotir, president of Sam Zell’s Equity Group Investments (EGI). EGI’s approach favors long‑term, cash‑flow‑generating investments that are less likely to become obsolete, avoiding the uncertainty of tech startups and focusing on companies with durable geographic moats, franchise protections, or quota‑based entry barriers. The “HALO” (heavy assets, low obsolescence) trend is bolstered by tax reforms that renew bonus depreciation, allowing families to deduct the full cost of equipment in the year it’s placed in service, which can offset gains from appreciated stock holdings. Dealerships, in particular, offer resilient parts‑service margins and predictable income, while fisheries and agricultural assets provide additional barriers to competition. Because family‑backed firms like EGI are not pressured to flip investments within a few years, they can acquire such assets at discounts and patiently wait for long‑term payoff, even amid inflation, tariffs, and rising input costs.

Read more: https://www.cnbc.com/2026/05/15/family-investors-economy-businesses-to-avoid-ai-disruption.html

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