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I’ve been receiving questions about what type of companies I like to buy and why. I can keep it simple. To understand a company you must understand the products it manufacturers and sells. My favorite type of product is one that will continue to be consumed over long periods of time at a fairly rapid pace. Let me give you some easy examples. Toilet tissue is a great product because it is a consumer staple. Every time you use the bathroom you use a piece of toilet paper. People use the toilet almost every day. When the tissue runs out you grab a new roll. This is the perfect product. It’s a must have and its consumed on a regular basis. Others products that fit into my analysis of a great products include razor blades(hair just keeps growing),batteries(they die and its time for new ones),needles and syringes(rarely use same needle more than once,and washing detergent. Companies that sell these products continue to have growing revenues and enjoy pricing power because these items are beneficial to everyday life. Also,holding stock that make these products are fairly defensive and do well in times of economic stress. I would consider looking into a company i recently invested in called Becton Dickinson. They are the world’s largest manufacturer of needles and syringes. I got the idea from one of the greatest investors of our time Warren Buffett.

Becton Dickinson Symbol:BDX

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