Bed Bath & Beyond has had a rough few months. The company recently announced that it will close 150 stores and reduce its workforce by 20%. Robinhood, once the favorite of intraday traders, has seen its popularity slow after a series of issues, including restrictions on stock trading. Sales have also slowed in recent quarters, leading the company to reduce costs, including laying off 5% of its workforce.
When considering investing in a company, it is important to be aware of the product or service they offer. Without this knowledge, it is impossible to know if the company will be successful in 10 years. To get a fair picture of the company, you need to look at at least 10 years of annual reports. Trying to predict how the company will do in 10 years based on its early years is not possible.
Additionally, it is not wise to invest in companies with a market capitalization of less than a billion dollars. It is also important to consider if the company has little debt, as this could be an indication of success. The Motley Fool was founded in 1993 by brothers Tom and David Gardner. The website, podcasts, books, newspaper columns, radio programs and premium investment services help millions of people achieve financial freedom. Dividend Aristocrats are companies that have increased their dividends for at least 25 consecutive years and are considered safe stocks.
Berkshire Hathaway (BRK A 0.24%, BRK B 0.6%) is a conglomerate that owns a collection of about 60 subsidiary companies, including GEICO, BNSF and Duracell. Many of these companies are non-cyclical and perform well in any economic climate. Berkshire also has a large portfolio of stocks with important positions in massive and mature companies such as Apple (AAPL 0.01%), Bank of America (BAC -0.77%), Coca-Cola (KO 0.44%) and more. Disney was not immune to the COVID-19 pandemic and experienced significant drops in revenue due to the closure of theme parks, cruise lines and movie theaters. Procter & Gamble (PG 0.27%) manufactures products that people need in any economic environment.
The parent company behind Pampers, Downy, Tide, Charmin, Gillette, Old Spice and Febreze has increased its dividends for 66 consecutive years. Real Estate Investment Trusts (REITs) are not immune to short-term volatility but can be a sound long-term investment when investing in a diverse index fund like this one. Starbucks (SBUX 0.39%) has an extremely loyal customer base and an ecosystem of products designed to work better together. The company has pricing power over its rivals due to its trusted brand and efficiency advantages due to its enormous scale. Apple (AAPL 0.01%) also has an extremely loyal customer base and an ecosystem of products designed to work better together. However, even the best-managed companies experience short-term price swings, so it is important not to worry about stock prices for days or weeks but focus on companies that are most likely to do well in the long term.