One of the blessings that comes with the territory of investing in individual companies rather than a widespread basket of stocks like the S&P 500 is that you get to allocate your money to specific companies that are either growing faster than the S&P 500 or selling at a substantial discount to the typical stock in the S&P 500. It’s a style of investing that lets you personally find intelligent places to put your money even when “the average stock” in corporate America does not offer you an attractive entry price.
In the ‘50s and ‘60s, you had IBM outperforming the S&P 500. In the ‘60s and ‘70s, you had the tobacco giants and conglomerate-type businesses of General Electric, United Technologies, ITT, and Procter & Gamble roaring to life. Someone who bought Coca-Cola in the early 1980s has been compounding at 15.5% ever since. Buying Disney and Nike in the … Read the rest of this article!