The White Girl Index

“Never bet against sorority girls in yoga pants”

By: Lydia Tallarini

Reddit is a pretty odd website. During the pandemic, r/wallstreetbets came into the public eye as users “stuck it to the man” and short squeezed GameStop; meanwhile, I was browsing r/bettafish and looking at photos of other people’s aquariums. Somewhere along the line, I stumbled across an old post on r/investing that intrigued me.

On October 10, 2018, u/thisistheperfectname wrote about the “White Girl Index,” a collection of stocks he had put together with a friend. With a list of about 20 public companies, they intended to capitalize on the buying power of your stereotypical 20-something white girl.

As a now-deleted user so aptly put it, “Never bet against sorority girls in yoga pants.” There are lots of people, disregarding gender or race, who have a disposable income and choose to spend it in “basic” ways. Apple, Netflix, Starbucks, and others benefit from the brand recognition associated with being an established corner of society.

For some brands, this type of loyalty makes sense. Take Canada Goose, for example. At least on this college campus, it’s normal to see the Canada Goose logo. Their jackets are famously top-of-the-line, and there will always be customers willing to buy that kind of quality. Lululemon is another strong company, keeping up with the fads but maintaining quality.

As pandemic restrictions ease, it’s interesting to see how companies do. Starbucks, for instance, might enjoy more market share in areas where local coffee shops have closed down. And although it was a brutal period for much of the population, those with more disposable income moved their shopping online, prompting growth in luxury brands such as Louis Vuitton and Sephora (which are owned by the same holding corporation).

I can’t speak to the future profits of these stocks, but they seem like strong picks, especially for people who are in the customer base and want an emotional connection with their investments. But beyond the numbers, I wonder if these businesses enjoy success because of the quality of their products or because of the wealth and trend-awareness of their customers.