7investing advisor Dan Kline’s Top Stock for October has sneakily changed the kind of company it is and the market has yet fully notice. It’s a sleeping giant that will race to new heights in more than one massive sector.
October 1, 2020
It’s good to be king. Being the leader at anything can be a challenge for any company. Becoming a leader in multiple categories with the tools and assets to easily adapt to a changing marketplace is truly rare. 7investing advisor Dan Kline’s Top Stock for October has shown that it can win the game even as the rules change by leveraging something that no other company in its space can even attempt to duplicate.
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Some stocks get judged by what the company used to be rather than what the company has become. That can lead to shares languishing until the market catches up and starts to value the company for where it stands now rather than where it has historically been.
I’m Dan Kline, lead advisor for 7investing. One of the ways I evaluate stocks is by digging in to understand how companies are evolving and looking for areas where investors have not caught on to how a company has positioned itself for the future. It’s all about thinking a few steps ahead — something that a handful of companies do much better than others.
We’ve seen it during the pandemic — moves that weren’t heavily valued by the market — like McDonald’s investing in digital and delivery or Walmart spending billions on its supply chain — that not only paid off because of these unique times but were clearly the right investments for where the world is going.
Identifying which stocks will benefit from long-term thinking, planning, and spending money — sometimes a lot of money — requires understanding not just individual brands but whole sectors of the market. It also requires patience because investing in the future means making less profit now. That’s something that many CEOs have trouble doing as they manage for the quarter and to hit targets that trigger bonuses or keep them from getting fired.
The strongest players, which include my stock pick this month, always stay focused on building a sustainable model for the long-term. That can mean sacrificing what analysts might consider a good quarter, sometimes even years, to make the needed investments so the company can be positioned to dominate for decades.
To hear what my stock pick is the month — my very first pick as a member of the 7investing team — visit 7investing.com where for just $49 a month you will gain access to all seven of our stock recommendations each and every month. You’ll also get access to the 7investing team through member only live streams and you’ll get to see our past picks, as well as all sorts of exclusive content on the site.
I’m Dan Kline, we’re 7investing, and we’re here to empower you to invest in your future.