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 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
Be on the lookout for our upcoming piece which explains why and which Consumer Staples we believe offer long-term income-oriented investors a generational entry point.
Want more content? Subscribe now!
The information, data, analyses and opinions presented herein (a) do not constitute investment advice, (b) are provided solely for informational purposes and therefore are not, individually or collectively, an offer to buy or sell a security, (c) are not warranted to be correct, complete or accurate, and (d) are subject to change without notice. Kailash Capital, LLC and its affiliates (collectively, “Kailash Capital”) shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information herein may not be reproduced or retransmitted in any manner without the prior written consent of Kailash Capital.
Kailash Capital, in preparing the information, data, analyses and opinions presented herein, has obtained data, statistics and information from sources it believes to be reliable. Kailash Capital, however, does not perform an audit or seeks independent verification of any of the data, statistics, and information it receives.
Kailash Capital and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.