In recent years, investor attention has been focused on the largest tech firms. However, there exists another class of companies that may offer significant investment opportunities – the 'hidden champions'.
What Are 'Hidden Champions'?
The concept of 'hidden champions' was articulated by consultant Hermann Simon, who described companies that operate in specialized technologies with a low level of public awareness. These companies typically rank among the top players in their segments and generate annual revenues between $5 million and $5 billion.
Five Companies Poised for Growth
Five companies representing the 'hidden champions':
1. CyberArk Software (CYBR) – a leader in access management. 2. Enovix (ENVX) – a innovator in battery technology. 3. Willdan Group (WLDN) – an expert in grid modernization. 4. Ambarella (AMBA) – a developer of edge AI chips. 5. Lattice Semiconductor (LSCC) – a leader in programmable chip manufacturing.
Principles of Success for 'Hidden Champions'
The success of 'hidden champions' is based on several principles: ambition for leadership, extreme specialization, innovation, customer closeness, self-financing, and high performance. These factors help them maintain competitive advantages and ensure long-term growth.
In the dynamic technological landscape, investing in 'hidden champions' can provide pathways to significant income opportunities, especially with long-term focus on their innovations and sustainable growth.
