By Oliver Clarke
The US stock market has been bullish for a long time now, which means that it is important to invest in solid stocks that have performed consistently well in the past, and are expected to continue to do well in the future. For example, Johnson & Johnson (JNJ) is not only active in supermarket goods (baby care, wound care, skin care, etc), but the majority of its business is in pharmaceuticals and medical devices. If you are a diabetic, you may have heard of Animas or LifeScan, which are Johnson & Johnson brands. Johnson & Johnson’s product line is diverse, and meets needs that are not expected to go away. Therefore, it is likely that the company will be able to weather any economic storm, making their stock a solid bet.
Starbucks (SBUX) is only expanding its Asian market, with 3,400 stores in China alone and plans to expand to 6,000 stores by 2022. The company is localizing its menu by crafting drinks targeted to appeal to Asian tastes. With these plans, it is likely that SBUX will rise.
Apple (AAPL) is growing more modestly than in the past, but like Johnson & Johnson, Apple is not going away any time soon.
Some stalwart corporations are not household names but should be in your stock portfolio. Two in particular are Berkshire Hathaway (BRK.A, BRK.B) and the Centene Corporation (CNC). Berkshire Hathaway is Warren Buffett’s company, whose name you might recall as that of one of the most successful investors of all time. His net worth is currently $88.8 billion. Berkshire Hathaway owns over 60 companies, which includes familiar names such as Geico, Duracell, Dairy Queen, and Fruit of the Loom, as well as owning significant shares in the Kraft Heinz Company, United Airlines, and Delta Air Lines. With his 77 years of investment experience and unmatched success, it’s not a bad idea to trust Warren Buffet.
Centene Corporation is less immediately appealing. It is a middle-man for health insurance, including Medicare, Medicaid, the ACA Health Insurance Marketplace System, Tricare, and commercial insurances. But with the aging population and therefore rising healthcare costs, it is smart to bet on healthcare.
This brings me to my last point: the elder care industry. Start looking into this. For the first time, seniors are expected to outnumber children in the US by the year 2035, according to the Census Bureau. Because the older generations vote at higher rates than younger generations, Medicare and Social Security are likely to expand over time, which means more business for companies like Centene Corporation.