The Supremacy of Staples: A Triumph of the Mundane:
- The market is awash in stories about the wonders of day trading (h/t Ramp Capital tweet) egging the inexperienced to buy what are the hottest new Tech and clean tech stocks
- As documented in our last paper, Kailash believes that, while lacking the glitz, glamour and euphoric price action seen in many of today’s loss-making Tech stocks, Consumer Staples are some of the best investments one can make for the long-haul
- The chart below shows that Consumer Staples, humble purveyors of diapers, dog-food, disinfectants and all the things you actually NEED have absolutely trounced the intermittently glamourous world of Tech
- This will resonate with fans of Warren Buffett who understand that buying high-quality firms with recurring revenues, healthy margins and fat dividends generates outsized returns with lower volatility than tech all while providing people very high levels of income
- Kailash doubts anyone knows for sure if a prior CFTC feature stock, Zoom, a firm valued at nearly 3x that of Kimberly Clark, will be the dominant player in video communications ten years from now, but we feel confident that people will blow their noses on Kleenex, swaddle their young in Huggies and continue washing their hands
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January 22, 2021 |
| Authors: Matthew Malgari, Nathan Przybylo, Dr. Sanjeev Bhojraj and John Durkin
January 22, 2021
Authors: Matthew Malgari, Nathan Przybylo, Dr. Sanjeev Bhojraj and John Durkin
