Stocks are a risky investment and can easily affect an investor’s portfolio. Systemic risk and Company-specific risk make up the common types of risks though the former is more often than not obligatory when investing in equities. However, it is equally important to watch out on the latter. After all who want to mess up with their portfolios?
But some stocks have solid business models and can still be disrupted
Everything has its good and its bad side. The stocks may be a dangerous business as earlier described but there those have some market assurance. Yes, their business models are intact, but they can still be disrupted. According to three Motley Fool specialists, Todd Campell, Matt Dilallo, and Jamal Carnette, CFA, Pfizer, Kinder Morgan, and Amazon.com makes such models.
Pfizer, Inc
This comes in handy for any investor who is looking at tucking away quality stocks for the long haul. As many other drugmakers suffer from the threat of patent expiration, Pfizer says it has the hatchet for navigating any patent risk. It has been able to build on its mergers-and-acquisitions, cost discipline, research and development performance, all which are positioned in line with a multiyear period of growth. Apart from all these strategies Pfizer still has a mountain of cash, besides, its dividend has grown
Kinder Morgan
The company is currently in control of the largest gas pipeline network in the country. It has limited direct exposure to gas prices, which makes it a great long-term play on gas. While the demand for natural gas is not expected to peak anytime soon, Kinder Morgan’s pipelines will remain fundamental for decades to come. This assures investors of a growing stream of cash dividends and in safe return stocks for a long time. Apparently, the cash flow is likely to grow alongside demand.
Amazon.com
Over the last decade, there has been a noticeable shift toward e-commerce, and this is liable to increase over the next 15 to 20 years. Apparently, Amazon may seem like a reverse of safe stock, but surprisingly it has been outperforming in the retail industry. It is for this reason that investors should look out for it having reported an overall year-on-year revenue increase of 29% in the third quarter. It seems like it growing faster than the overall economy.
THE MORNING REPORT
Start your workday the right way with the news that matters most.
Your information is 100% secure with us and will never be shared Disclaimer & Privacy Policy
