Should I invest in multiple sectors?

Discussion in 'Ask any question!' started by Alex Griffith, Nov 15, 2018.

  1. Alex Griffith

    Alex Griffith New Member

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    I will not invest in mutual funds or anything, so here's my question.

    Should I invest in one company in multiple sectors, or multiple companies in one sector?

    For example, one company in the utility sector, one in the finance sector, etc.

    Or, multiple companies in the finance sector.

    Which is better for long term investing?
     
  2. Onepoint272

    Onepoint272 2019 Stockaholics Contest Winner

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    For long term investing I would suggest buying one company at a time. Buy into a company that:

    • is NOT publicly traded and is outside of the financial systems (no or very little debt) as most info from publicly traded companies are lies and their main business is the stock. The products and services are a secondary inconvenience necessary to sustain the stock trading business.
    • is sustainable; will be around for a very long time and they manage for the long term (decades) and not for the next quarter's numbers
    • is owned predominantly by its managers who have integrity and concern for their business, customers, employees and stockholders
    • has scarcity in terms of resources or skill sets
    • has a moat; a business with a large barrier to entry
    For example, wine is a commodity that has been around for millennia and there are many wine makers and they all need bottles. There are several makers of wine bottles, but in all the world there is only one company that makes the machines that make wine bottles. Buy that company.
     
    #2 Onepoint272, Nov 15, 2018
    Last edited: Nov 15, 2018
    Jrich and Stockaholic like this.

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