I wrote this post for new investors that may be risk-averse.
If you’re like me, you have a high tolerance for risk. You will have a portfolio that consists of companies on the cusp of innovative disruption. These companies’ stock prices tends to be quite volatile. You could be up 200%, and then give back more than half in weeks.
That kind of price movement may not sit well with some investors. If you fall in this category that’s fine, because I have a suggestion for you: Clorox!
Now, I am a believer that many old-line companies are in big trouble. They’re simply not moving fast enough to remain competitive. However, Clorox (NYSE: CLX) is unique. I believe they will continue to outperform the market for many years to come.
Clorox makes products that we must have on a daily or weekly basis, and that’s simply not going away. Consider the brands they own:
1. Clorox Wipes
2. Clorox Bleach
3. Hidden Valley Salad Dressing
5. Burt’s Bees
7. Brita Water Filters
8. Kingsford Charcoal
9. Fresh Step Cat Litter
I think you could sleep at night if you owned these brand names. You’re not going to set the world on fire in the way you would if you owned an Amazon or a Netflix, but that might not be your style.
That’s why I believe Clorox is a good choice for risk-averse investors.
Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock. Rather, it is presented for readers’ education and consideration when making their own investment decisions. The author has no position in any of the companies mentioned.
Click the image of the book at left to be taken to its Amazon page. (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)