Saturday, February 1, 2020

Looking for top stocks? Bet on popular consumer brands

Here is the article.


From 1990 to April 8, 2015

Coca-cola - climbing 771 percent
Colgate - 1714 percent
Procter & Gamble 909 percent

Last 25 years
PepsiCo's up 866 percent
McDonald's 1099 percent
Walt Disney 1052 percent

outperform the S & P's 508 percent gain

Those kinds of long-lasting brand-name operations have been keeping portfolios afloat in good times and bad for years.

Case study 


S & P 500 consumer staples sub-index, the sector is up 749 percent since 1990, which is more than 200 percent points higher than the S & P 500 over the same time period.

The outperformance, in part, is because they're large, diversified operations that tend to perform better in a downturn.

Between Oct 2008 to March 6, 2009, S&P 500 consumer staples sub-index fell by 29.68 percent, compared to 41.14 percent for the S&P 500.

Actionable Items


I have to invest more equity fund in 2020. I have two choices compared to s & P 500 index. One is to invest into information technology sector, or consumer or dividend sector.


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