Motley Fool Money Boring Companies, Exciting Returns
Apr 22, 2023
Sanmeet Deo, a Senior Analyst at Motley Fool, shares his insights on the power of boring investments. He advocates for passive strategies, emphasizing ETFs and mundane companies that offer stability. The discussion highlights key metrics like return on invested capital and how ordinary businesses, such as potato processing and car auctions, can yield impressive returns. Learn why investing in reliable stocks like Lamb Weston and Sherwin-Williams might just be the smartest move amid market fluctuations.
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Exciting Investments Can Backfire
- Exciting, story-driven stocks like Peloton and Metaverse stocks can backfire.
- Consider the long-term viability of investments beyond hype.
Niche Wealth Creation
- Willis Johnson built a fortune salvaging vehicles, demonstrating wealth creation in niche markets.
- A McDonald's franchise owner and a piping product business owner also achieved wealth in ordinary ways.
Index Funds as Portfolio Staple
- Use index funds as a portfolio staple, especially if you lack the time or inclination for individual stock research.
- Consider SPY, VTI, and VT for broad market exposure.
