Are You Ready to Learn the Secret to Finding the Best Stocks?
It is so simple that most people take it for granted, but if only you had known about this secret…
- In 1994, you could have bought Colgate-Palmolive for less than $10 a share and made over 7 times that money.
- In 1995, you could have bought Microsoft for $4 and made over 6 times that money.
- In 2003, you could have bought McDonald’s for $13 a share and made over 6 times that money plus a growing stream of dividends.
How is it that after the crashes of 2000-2002 and 2008-2009 some investors have gained so much?
They know the secret… They identify the companies with the highest sales in their industry.
This is so obvious that it probably makes us laugh, but it also serves to enlighten us about a very important reality within the investment arena:
The best secrets to successful investing are not complicated.
In fact, they are so simple that anyone can understand them; however, very few have the discipline to put them to practice.
When a company is the top seller in a given industry, this means it is successful. Take these examples:
- Microsoft Windows operates around 90% of the world’s personal computers.
- Intel sells around 80% of the world’s microprocessors.
- Campbell’s sells more than 70% of the world’s packaged soup.
- Visa processes over 60% of the world’s credit and debit cards.
- Colgate-Palmolive sells over 40% of the world’s toothpaste.
All of the above are excellent businesses with vast and strong profits, and like these, there are many more out there.
As soon as a business starts selling more than the rest in its industry, it is very difficult to compete against it.
Just imagine trying to start a home-improvement business today. Your competitors are Home Depot and Lowe’s. Ouch!
What about a retailer? You will have to face Wal-Mart!
The best fast food? You will have to sell more than McDonald’s.
Yep! It’s not going to happen… there is no way to dethrone #1.
Just look at Amazon.com. This virtual bookseller sells more books than “real” bookstores. No one can compete against it, because it will always be capable of selling more.
If you had bought Amazon shares four years ago, when they were less than $30 each, you would have been 5 times richer at a time when most investors lost money.
If you find a company that sells a product people like and want, and which is selling more than others in its industry, you can make a fortune buying its stocks. You owe it to yourself to know who is selling the most.
Not all of the best sell more, but the majority does, and you should always be on the lookout for them.
You can get more tips on how to invest your money wisely at CherryShares.com.
Like us on Facebook.
