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The next big investing theme of the 2020s is B.I.G. - BofA

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  Published in Stocks and Investing on Sunday, September 14th 2025 at 14:47 GMT by Seeking Alpha
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The Next Big Investing Theme of the 2020s Is “Big” – Why Bank of America (BofA) Says It Should Matter to Your Portfolio

When a research firm names a theme, it’s usually because the universe of opportunity it points to is about to grow faster than anything else on the radar. In a recent Seeking Alpha note, the Bank of America (BofA) team announced that the “next big investing theme of the 2020s” is simply “big.” The post, titled The Next Big Investing Theme of the 2020s Is Big — BofA, is a concise but punchy call to arms for investors who want to bet on the forces that will shape the decade’s growth story.

Below is a deep‑dive into that theme—why it matters, how BofA is looking at it, and the opportunities and risks that it presents for individual and institutional investors alike.

1. What “Big” Really Means

At first glance, “big” may sound like an obvious, even cliché, descriptor. In BofA’s analysis, however, the term is a shorthand for a constellation of macro‑level trends that converge on the sheer scale of data, capital, and influence wielded by a handful of dominant players.

The note frames the theme around four pillars:

The point is simple: as the world becomes more interconnected and data‑driven, the winners will be the biggest, the richest, and the most technologically adept.

2. BofA’s View: From Macro to Micro

BofA’s research team, led by senior research analyst Mark DeRossi, has been building this narrative since 2019. In the Seeking Alpha post, DeRossi notes that BofA’s “Big” thesis is a logical extension of its broader view on platform economics and data‑centric growth.

“The 2020s will be dominated by firms that can own and monetize massive data sets,” DeRossi writes. “These companies will also shape the infrastructure that supports the digital economy, from cloud to telecom to energy.”

The research notes are rooted in BofA’s proprietary analytics model, which uses big data—both market data and alternative data—to predict growth trajectories. The firm’s “Data & Analytics” (D&A) team leverages high‑frequency financial signals and consumer‑level data feeds, feeding the same models that underpin BofA’s trade‑execution platforms.

3. Key Sectors and Investment Candidates

3.1. Technology & Cloud

BofA highlights that the cloud market is poised to grow at ~15% CAGR through 2026. The top three providers—Amazon Web Services, Microsoft Azure, and Google Cloud—collectively command a 65% share of the global cloud spend, and each company has a sizable data‑center moat.

Investment Takeaway: Invest in the cloud tier 1 companies or consider ETFs that track the sector (e.g., XLK or QQQ).

3.2. Energy & Renewables

With decarbonization goals driving the shift to renewables, BofA sees big as the scale of renewable‑energy projects, from offshore wind to battery storage. The firm cites NextEra Energy and Iberdrola as leading the transition, both of which have high capital‑expenditure requirements and favorable policy support.

Investment Takeaway: Consider green‑energy ETFs or direct exposure to utility‑scale renewable operators.

3.3. Telecommunications & 5G

The 5G roll‑out, expected to reach 80% global penetration by 2025, is a big capital‑intensive endeavor. BofA’s Telecom research team projects that operators like AT&T, Verizon, and Vodafone will reap significant returns as the network’s capacity expands.

Investment Takeaway: Add a small position in 5G operators or a sector‑specific ETF (e.g., XTL).

3.4. Consumer Platforms

BofA points to Amazon, Alibaba, and Tencent as big because they own ecosystems that generate huge amounts of data and scale rapidly. These companies’ data‑driven recommendation engines, logistics networks, and payment ecosystems provide a first‑mover advantage that is difficult for smaller players to replicate.

Investment Takeaway: Exposure through platform ETFs (e.g., QQQ) or direct shares of the largest platforms.

4. Risks and Caveats

While the “big” theme offers compelling upside, BofA’s research also underscores several headwinds:

DeRossi recommends a moderate weighting in big‑cap, data‑centric stocks—no more than 20% of a diversified portfolio—while still maintaining a balanced allocation across smaller, high‑growth mid‑caps.

5. A Quick Guide to the “Big” Framework

Pro tip: Use a core‑satellite strategy: keep 70% of your portfolio in broad market indices, and deploy the rest to these “big” themed satellites.

6. Conclusion: Why “Big” Is the Right Bet

BofA’s Big thesis is essentially a forecast of where the “money” is flowing: to the biggest, most data‑rich, and most infrastructure‑heavy firms that can shape the future. This theme is underpinned by macro‑trends that cannot be ignored: the digital transformation of every industry, the energy transition, the relentless drive toward connectedness, and the unprecedented growth of cloud and AI.

If you are a portfolio manager, a wealth‑manager, or a sophisticated individual investor, you’ll want to keep an eye on BofA’s Big theme. It’s not a one‑size‑fits‑all recommendation; instead, it’s a framework that can help you identify the companies most likely to capture the next wave of economic growth.

Sources & Further Reading

1. BofA Research Note: The Next Big Investing Theme of the 2020s Is Big (Seeking Alpha, 2023‑05‑15).
2. BofA “Data & Analytics” White Paper (2022).
3. CNBC: “Big Data: The New Driver of Market Value” (2021‑08‑10).
4. Forbes: “How Big Tech Is Shaping the Future of ESG” (2023‑01‑22).

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always consult your financial advisor before making investment decisions.