Looking for No-Brainer Growth? These 2 Companies Share a Secret Weapon
In a bear market, some investors may try to quickly shift some of their funds from risky and plummeting growth stocks to more stable and secure value stocks. But all this reshuffling ignores a crucial part of long-term investing success: identifying long-term winners and then holding on through the short-term ups and downs.
Costco Wholesale (NASDAQ: COST) and American Express (NYSE: AXP) are two excellent stocks that have seen their shares slip a bit in recent months but have beaten the market over the past five years. They also share something that make them no-brainer stocks to own in any market. Here's their secret: a fee-based business model. Let's explore why that makes them so compelling.
Costco has been posting phenomenal performance since the pandemic began. It has outperformed competing discount retail chains such as Walmart and Target this year in sales growth as they all face inflation and high comparable sales growth from the early stages of the pandemic.
Source Fool.com
