Tech startups and venture capital used to dominate the business investment landscape but times are changing and there are better options for savvy investors. In Texas, Charles Covey is carving out a different path for investors—one that prioritizes the enduring strength of blue-collar businesses. As the founder of Valorem Capital, he has creates The Blue Collar Business Fund, dedicated to growing trade businesses in Texas. Covey has become a leading figure in real estate and business investment within the Texas Triangle—the economic center of the Lone Star State and home to some of the best growth markets on the planet.
His approach merges financial success with meaningful community impact, ensuring that these essential businesses not only survive but thrive for the future. “Building generational wealth isn’t just about high-risk bets—it’s about investing in industries that stand the test of time,” says Covey. “Blue-collar businesses provide stability, resilience, and long-term growth that investors might not normally have access to. We are changing that in a big way.”
The Stability and Scalability of Blue-Collar Investments
Rather than following the traditional route of tech-driven investments, Covey recognized the enduring value of industries that have been immune to automation and digital disruption so far. “AI isn’t going to start welding steel tanks or picking up garbage anytime soon,” Covey explains. “These are businesses that have been operating successfully for decades, through all kinds of economic cycles.”
For many investors, the allure of flashy, high-risk, high-reward tech investments is undeniable. However, Covey advocates for a more measured approach—one that balances stability with growth. “If you invest in the next big tech company, there’s a chance you’ll see a massive return. But there’s also a chance you’ll lose all of it,” he notes. “With blue-collar businesses, we know their performance history over decades. We understand how they operate in both downturns and booms. It’s unmatched consistency of revenue that is difficult to match in other investments.”
Key Strategies for Investing in Blue-Collar Businesses
Valorem Capital’s model aggregates high performing blue-collar businesses into their fund, allowing investors to participate in industries that were previously out of reach. “The big money has long understood the value of these businesses – family offices and high net worth individuals have been buying companies and beating the stock market and many other investments. These opportunities aren’t usually available to the typical investor but we are changing that and providing unprecedented access to predictable, dependable returns. We’ve created a structure where investors can enter the market at a much lower threshold and still reap the benefits of diversification and our expert management team.”
For investors looking to capitalize on the blue-collar sector, Covey emphasizes several key strategies:
1. Diversification Across Multiple Businesses – Investing in a single business carries inherent risk, but a well-structured fund that holds multiple businesses offers built-in resilience.
2. Targeting Less Cyclical Industries – Industries that provide essential services—such as waste management, HVAC, and infrastructure maintenance—tend to perform consistently, predictably, regardless of economic fluctuations.
3. Investing in Founder-Led Transitions – Many blue-collar businesses are owned by aging founders who are looking to retire. By acquiring these businesses and implementing modern efficiencies, Valorem Capital unlocks significant growth potential while preserving American jobs and community impact.
Avoiding Common Pitfalls in Blue-Collar Investment
One of the biggest mistakes Covey sees investors make is underestimating the operational complexities of running a blue-collar business. “People may recognize the value in these companies and think they can just buy one and figure it out. But these businesses require experienced operators. It’s not usually as simple as taking over and cashing checks.”
Covey’s approach centers on expert-led management within a diversified fund model. “Rather than trying to manage a business they don’t fully understand, investors can partner with experienced professionals who know how to optimize these companies for long-term success.”
A Smart Move for Long-Term Wealth Creation
As traditional investment vehicles, like the stock market, face increasing volatility, Covey sees blue-collar businesses as a safer and more predictable option. “If you look at the stock market projections for the next 24 months and beyond they are volatile but relatively flat overall. Real estate markets have been hit with instability, especially multi-family and self storage projects that don’t have the big returns they once did. In spite of all that, blue-collar businesses—especially those that provide essential products and services—continue to generate consistent profits.”
With a targeted investment strategy, Valorem Capital aims to more than double investors’ money over a five-year period. “Our goal is clear: we want to generate strong, stable returns while keeping these vital businesses thriving. When investors see those results, they come back, and they tell their friends. That’s how real, sustainable wealth is built.”
For more information about investing with Valorem Capital , connect with Charles Covey on LinkedIn or visit his website.
