It’s All About Passing on Higher Costs to Customers

Wealthy investors tend to see inflation as a friend, not an enemy. Rising prices tend to benefit assets like stocks and real estate over time. Owning companies that can pass on all, or nearly all, of inflation’s higher costs can fare even better over time. When inflation subsides, higher prices remain in place, leading to better profits for investors. While there may be some headwinds now, great companies can be had for a reasonable value. One such company is McDonald’s (MCD). The ...
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Keep Investing in Companies Raising Prices as Inflation Remains High

Inflation rates are coming down off of a 40-year high. But they’re still far higher than average. The process will take time to fully play out. When it does, prices will remain higher than they are now overall. Companies that can raise prices and still maintain market share and their customer base will be just fine as this trend fully plays out. Some companies keep customers thanks to popular, low-priced products. Others are able to raise prices as there are few, if ...
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This Household Name Has A Better Future Trend Than Its Biggest Competitor

Many industries tend to have a few big players. There will likely be a single player that dominates the industry. But things can change. And underdog companies looking to catchup to the big dog can potentially deliver better returns while doing so. That can come about from a better product or service mix, better customer service, or a way to improve profitability during an economic downturn. In the home improvement retailer space, Lowe’s (LOW) is down more than the overall market in ...
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This Trend Will Continue – Invest While Markets Are Fearful

Economies change over time. The U.S. economy is largely driven by consumer spending. Most of the goods that consumers spend money on are made overseas, where labor is cheaper. But that’s starting to change. A big reason why is automation. Rather than employ factory workers, technology allows for goods to be made with minimal human interaction. That’s making it easier for manufacturers to operate in the high-cost United States. Companies that play to that trend have years of growth ahead. In the ...
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Scoop Up Companies Making New Highs Now

When markets are running scared, it may be prudent to look at companies making new highs. Chances are there’s something going on with the underlying business that explains why they’re bucking the trend. And chances are that trend will continue. There are always a few companies making new 52-week highs, even in a challenging market. The past few months have also seen a rotation towards more value-oriented and defensive stocks moving higher. One such play is telecom AT&T (T). The company hasn’t ...
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Slow and Steady Wins the Investment Race

Wall Street treats stocks like they’re sprinting. Each quarter, beating or missing investment results can lead to a big move higher or lower. But investing is like a marathon. Companies that consistently grow over time are rewarded over the long haul, no matter what the market is doing in the short-term. Investors can take advantage of short-term market fears to capitalize on great companies by buying them at a discount, and then letting the long-term take care of itself. One such slow ...
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Buy Market Bargains Ahead of a Turnaround

Investors pay a high price for certainty. By the time they pile into a “sure thing” investment, the price is already sky high. Meanwhile, when there’s a lot of fear in the market, great companies and opportunities can be had for a relative bargain. Today, investors have far more bargain picks than at any time in the past few years. And buying companies moving to streamline costs today will play out doubly well from higher profits and higher share prices. While tech ...
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To Follow Where the Big Money Is Going, Simply Buy the Big Money Players

One simple investment strategy is to follow a successful investor’s coattails. Many will follow billionaire investors such as Warren Buffett or Carl Icahn as they enter into a new stock position. A few will even own the stocks that are owned or managed by the investors. Another way is to look at asset management companies. They may not have a well-known billionaire running the helm, but they tend to grow their assets over time -- with big profit margins along the ...
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