4 education stocks to school you

Financial Journalist
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The return of kids to school this week made me think about education stocks. That, and a few impending school fees that rise by more than the inflation rate each year.

Education is a great business, in the right hands. High-quality education providers have traits of exceptional companies: a high return on equity, recurring revenue, a “sticky” product with high switching costs, and scalability as the same course is offered to more students.

The sector has several tailwinds: the boom in international education in Australia; parents spending more on their children’s’ education; growth in childcare and early-learning services; and higher demand for ancillary services such as online learning and tutoring.

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