7investing lead advisor Matthew Cochrane's stock recommendation for September is a company with a deep and wide economic moat that will protect its core business for years to come.
September 1, 2020
Great investments don’t always take the form of hot IPOs or obscure small caps. Sometimes the best investments are the ones hiding in plain sight.
7investing lead advisor Matthew Cochrane’s Top Stock for September might be a household name, but its economic moats protect its lucrative business lines in many different growing industries.
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Sometimes the best stock recommendation is the one hiding in plain sight, the one everyone knows about. You don’t have to get into the ground floor of the latest and hottest IPO to realize market- beating returns in your portfolio.
Hi, I’m Matthew Cochrane, lead advisor at 7investing. When investing, I like to look for companies with strong economic moats, or competitive advantages, preferably in growing industries with large market opportunities. While this requires a lot of qualitative work, including wading through conference call transcripts and 10-K filings, I don’t think there is anything more important factor than understanding a company’s moat.
Think of a moat surrounding a sand castle. The moat could protect the castle from incoming waves for a spell. But a real moat surrounding a real castle in old times could protect a local population from all types of external threats, allowing the entire area to flourish. In the same way, a company’s economic moat, protects it from competition, giving its business segments time to grow. When there’s an economic moat providing a company with real protection from outside threats, the results can be amazing.
If you’re interested in my stock pick this month, visit 7investing.com. For just $49 per month you will gain access to all 7 of our stock recommendations each and every month.
I’m Matthew Cochrane, we’re 7investing, and we’re here to empower you to invest in your future.