When retail investors pile into a trade, it’s usually overcrowded, overhyped, and overpriced – too late to do anything useful with it. Hedge funds take the opposite approach of retail traders: they examine the data carefully, check the fundamentals, and wait patiently for the shares to come down to their target price.
It’s not every day that someone with the stature of Bill Ackman, the world-renowned investor and
founder of hedge fund Pershing Square, makes a call that a stock will literally double in price. That,
however, is exactly what Ackman has predicted for Starbucks (SBUX) stock shares within the next three
years.
While most corporate media outlets will focus on the past struggles of Walgreens and the so-called
“pharmacy wars,” there are plenty of reasons to believe in the future of this great company. In fact, I
would claim that Walgreens’ acquisitions will not be an issue going forward and that WBA shares are a
great bargain at under $66.
If the fourth quarter of 2018 has taught investors one thing, it’s that late-cycle bull markets aren’t
necessarily an ideal time to go all-in. If anything, we should be looking at defensive plays right
now: safety stocks representing solid companies with a long-standing history of providing value to
shareholders.
Accumulating shares of Kimberly-Clark (KMB) stock is an ideal strategy to recession-proof your investing
account – and besides, you’ll be taking a stake in a hugely profitable company that’s built to last.
