After years of tech dominating headlines (and portfolios), a quiet shift is happening. The 2025 Barron’s Roundtable didn’t lead with AI or the metaverse—but with value. Industry veterans are eyeing sectors that have been overlooked in the buzz, presenting fresh opportunities for patient, savvy investors. It’s a back-to-basics play, but with some surprising picks.
Defense: Not Just a Government Play
While defense stocks often hover in the background, they’re gaining serious attention. With global tensions high and government contracts expanding, companies in this space are delivering reliable cash flow—and stock stability. For investors looking for geopolitical hedges and long-term moats, defense firms are becoming serious contenders.
Insurance: Boring, But Brilliant
Insurance may sound dull next to tech unicorns, but in a high-rate environment, it’s pure gold. Solid balance sheets, recurring revenue, and pricing power make insurers a haven for risk-conscious investors. Plus, many are undervalued relative to their earnings—making them prime targets for those hunting intrinsic value.
Utilities: The Steady-Eddie Bet
Utilities have long been seen as the “grandparent” stock—predictable, low-growth, and safe. But in 2025, with the transition to clean energy and grid modernization in full swing, this sector has fresh relevance. Add to that the dividend yields and infrastructure backing, and it’s easy to see why the pros are quietly bullish.
Sports Franchises: The Unexpected Heavyweights
One of the most unexpected mentions? Sports franchises. As leagues expand globally and media rights soar, owning part of a franchise is no longer just a passion play—it’s big business. With scarcity value (there are only so many pro teams) and brand loyalty unmatched by most corporations, some investors are calling it the new luxury asset class.
What This Means for Retail Investors
The takeaway? Diversification is back in vogue—and not just as a buzzword. With traditional tech valuations stretched thin, these under-the-radar sectors offer growth potential and resilience. Whether you’re rebalancing or reallocating, it might be time to think outside the Silicon Valley box.
