Owning Both Amazon and Kroger Stock Makes Sense as a Way to Profit From Groceries

Industry competition is often characterized as a sport, with a clear winner and loser, however, the business world is not always like that. Oftentimes, there can be more than one winner in an industry, and investors can profit from two competitors. For instance, while I am a proud and very optimistic owner of Amazon (NASDAQ: AMZN) stock, I recently bought Kroger (NYSE: KR) stock as well. Here's why.

In early June, Amazon dropped a bomb on the grocery industry. In buying Whole Foods, Amazon signaled it was ready to try to do to the grocery industry what it had already done to both books and enterprise storage.

This is why I own Amazon. It takes aim at huge industries, drops prices, and improves customer service through technology without regard for near-term margins. Using that formula, Amazon can take aim at just about any industry,  which means its total opportunity is much bigger than that of any company I know of. Even in the company's current markets -- online retail, cloud computing, and streaming video -- there is still a long runway for growth.

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Source: Fool.com