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7investing Lead Advisor Simon Erickson’s Top Stock to Buy in September 2022 has a “razor-and-blades” business model that’s gushing cash flows for its investors.
2022’s been a tough year for investors. Those rising interest rates and stubborn inflation numbers have taken a toll on several companies, and it’s going to be more challenging to find great investments in 2023 as well.
In this current stockpicker’s market, we should look for business models that have proven to work really well. One of those is the ‘razor and blades’ model, where companies sell hardware upfront and then a recurring stream of high-margin consumables over time. If the hardware induces switching costs or becomes difficult to replace, the consumables can create an extremely profitable and recurring business.
7investing lead advisor Simon Erickson’s Top Stock for September 2022 is exactly this type of company. Its global installed base of equipment is churning out incredible cash flows every year. And due to some short-term challenges – which he believes the company will have no problem navigating – now is the time for investors to pick up the stock while it’s on sale.
