Friday, June 21, 2019

Identifying the Best of Both Worlds

An interesting dynamic about the market is that there is often a sharp difference between investing in a stock that benefits from the marketing machine that captivates the avg. investor and investing in a financially sound stock that produces steady returns.

For the purposes of this illustration, Beyond Meat or Tesla would be poster children for  "marketing machine" equities, whereas Visa or Microsoft would represent the "Steady Eddies."

The rare company can profile in both realms. These are the places to look as you get diversification from both the "capture the imagination" and predictable return" crowds. At the end of the day, you want someone to buy at a higher price than you paid. Why not broaden the pool of market participants who may want to hold an interest?

Conduct due diligence selectively and invest wisely!