Fisher Investments on Consumer Staples

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CONSUMER STAPLES BASICS

Joe Consumer has one thing on his mind at 6:10 Monday morning: Coffee. Lulled by the drip of the coffeemaker, Joe idly listens to the news. After his first cup, Joe pours himself some Wheaties—the “Breakfast of Champions.” He stares at the bright orange box, recalling childhood dreams of becoming the next athlete to grace the front. Waking from his nostalgia, Joe quickly showers and shaves. He’s chagrined to discover he’s out of deodorant—his wife’s deodorant is the only alternative. (Hopefully, they mean it when they say “strong enough for a man.”) Next, he brushes his teeth but is bothered by his reflection—his hair is paying homage to Alfalfa. He gels his cowlick and is out the door 10 minutes behind schedule, as usual.

Your morning routine may be similar to Joe’s. The day-to-day items you use and the investment potential inherent in these products are the focus of this book. Coffee manufacturers, food and toothpaste firms, and a host of other businesses all fit into the global Consumer Staples sector.

This book casts a spotlight on the countless investment ideas found in the myriad products you have in your kitchen, bathroom, and workplace. Of the 10 standard investing sectors, Consumer Staples arguably plays the most active role in daily life. Many of the firms making the products you use daily are publicly traded and can be an integral part of your portfolio.

This chapter will highlight some Consumer Staples basics, including what makes some consumer ...