Investors Seeking Higher Equity Returns Should Focus On Companies With A Small Share Of Large Markets

Monday, October 15, 2012 07:04
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Investors Seeking Higher Equity Returns Should Focus On Companies With A Small Share Of Large Markets

Tags: financial planning | investing | investment strategies

Investors seeking to boost their equity investment returns should look for good companies with a small share of a large and growing market. Such companies are likely to specialize in disruptive technologies, creating dynamic change.

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They will also be well positioned to defy the slow economic growth environment that is likely to remain for the next several quarters.
 
Growth potential with a sustainable advantage are the first things to look for when researching companies to invest in. But the added ingredient of owning a small share of a large and growing market will show the strongest performers within a market segment.
 
Or, a company may own 70% market share in a market that is only 20% penetrated. These are the characteristics of companies that will continue to grow at a pace that out performs the slow growing economy.
 
Looking for such investments within the scope of your clients' personal as well as financial goals may help you find appropriate investments that fit their particular risk parameters.

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