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The Business of Convenience

July 20th, 2010 Written by Z

I like companies that sell something other than low price. When I’m looking for a stock that will perform, I want it to sell two things: a brand, or easy. Yes, easy, or convenience, is a product.

The Most Expensive thing on Earth

As the economist Keynes once said, “in the long run, we’re all dead.” That couldn’t be more true, and thanks to the ideas that back that quote, time is the most expensive asset we have. It is finite, it is intangible, and its value varies from person to person, but its always worth more to a consumer than it is to a producer…odd huh?

Be in the Business of Convenience

Products sell for two reasons: value, or easy, or both. Easy sells best because we like things to be made easier, and if a product can make something easier or more convenient, we’re all about it. Shopping at Walgreens for home essentials isn’t cheap, but its convenient. Getting pizza delivered to your door isn’t cheap, but its convenient.

My Four Convenience Picks

McDonalds – Convenience and low price with resiliency to recession. I can dig that.

Apple – Apple touts its virus-safe operating systems and easy to use interfaces on its products. I like that too. Apple’s products are easy to use, but you’ll have to have a degree to afford them.

Amazon – The online retailer of everything. Sign in, shop, have the mailman bring your stuff to you. Decent profit margins too, I like it.

Netflix – Easiest way to watch a movie. Inexpensive, readily available. Decent margins to boot!



Investing

  1. BILL
    July 20th, 2010 at 16:39 | #1

    I like to invest in companies that have an out of the box idea, and then follow thru. services is a great example. for instance I follow what some smart companies are doing. fyi, anybody heard of sapphire stretegic investing. they seem headed for big things.

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