A weapon is deterrence, is the mantra that governs the sector of Defense and security. Let’s face it we are living in a difficult world. Majority of the people are gun owners because they are aware of the fact that a minority comprised of the goons in the area owns the most sophisticated weapons. The same truth is applicable to the military organizations; they want weapons to create deterrence against the militants and other extremists.
The sector of the defense and security also lures organized players as well. For instance, all the major security agencies are always in search of latest weapons and assisting solutions. In the recent time, some cyber attacks also raised an alarm and added a new chapter in the book of defense and security under the title of cybersecurity. As an investor one should never forget that cybersecurity is going to become a parallel business along the lines of the current software business.
Many people think that the sector of Defense and security is primarily weapon driven segment. This is a misconception; most of the big players working in this industry have a versatile portfolio to flaunt. Security guards, cyber experts, CCTV cameras, surveillance devices, mobile network jammers, sensitive bulletproof jackets, windscreens, and sheets are all a part of this industry.
This industry also thrives on a paradox; a company owning nuclear power enjoys the double opportunity. It can sell its solutions to nuclear weapon developers. It can also sell its nuclear solutions for the peach purposes as well. War they say is the biggest opportunity for the business if you are well placed in the political environment. Most of the industry members in the Defense and security are well placed in the terms of the political tie-ups, though they are selling weapons their diplomatic tie-ups are commendable and this fact makes it a safe bet for long-term investment in some cases.