Motley Fool Money 3 Stocks We Just Bought
Mar 24, 2022
John Rotonti, a senior analyst at Motley Fool, shares insights on navigating the current interest rate landscape and why companies with pricing power are becoming increasingly attractive. He reveals three recently purchased stocks, emphasizing the importance of balancing growth with profitable businesses. Meanwhile, Jason Hall argues for the value of 'boring' stocks, highlighting how stable investments from mature industries can provide secure returns during market volatility. Both guests provide a fresh perspective on strategic investing in today's economic climate.
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Interest Rate Hikes
- The Federal Reserve is likely to continue raising interest rates to combat inflation.
- Investors should be aware of this shift and consider its implications for their portfolios.
Investing in an Inflationary Environment
- Diversify your portfolio and build a cash position if you are risk-averse.
- Focus on companies with pricing power, high returns on invested capital, and real estate.
Balancing Growth and Profitability
- Invest across the growth spectrum, balancing high-growth, unprofitable companies with profitable, cash-flow-generating businesses.
- Look for companies with growing free cash flow streams exceeding inflation.