Comment Update: Boring Stocks
We are long-term investors here at MyWallSt and recommend companies that we believe will have consistent growth for years to come. Updates are an opportunity for us to reaffirm our stance on a company while keeping you up to date on its developments. By renewing our comments with the latest information, we ensure that investors have confidence in our selections, regardless of their start date.
What do a financial services company, an online scrapyard, and a spreadsheet specialist have in common? It’s not often you’ll find FactSet, Copart, and Smartsheet grouped together, yet there are a few key, although not exactly exciting, similarities. They are all in the MyWallSt shortlist for one, they’ve all proven to be fantastic investments, and all three are rather boring businesses.
We quote Peter Lynch a lot around here if you hadn’t noticed. His magnum opus, ‘One up on Wall Street’, is foundational in our investment strategy, and if there is one thing Peter Lynch likes more than anything, it’s a boring company:
“The perfect stock would be attached to the perfect company, and the perfect company has to be engaged in a perfectly simple business, and the perfectly simple business ought to have a perfectly boring name.”
Paying homage to Lynch, today’s comment updates highlight three businesses that don’t make many headlines, yet continue to churn out consistent growth year after year in their own, esoteric industries. As such, they can fly under the radar and avoid much of the volatility that accompanies many of the bigger names on Wall Street. While they may not be as exciting as the Teslas or the Shopifys of the world, there is always a place for a FactSet, a Copart, or a Smartsheet as part of a well-balanced, diversified portfolio.