Investing is easy, right? Simply wait for the Forbes list of the Top 100 Brands and invest in one of the companies. Unfortunately, it is not that easy, as investment manager Igor Cornelsen explains.
“Forbes Top Brands for 2016”
What was the most valuable brand for 2016, according to Forbes? The answer is Apple worth $154.1 billion. So, should you rush out and purchase as much Apple stock as possible?
Investment professional Igor Cornelsen has advised his clients to look more closely at the numbers. It is important to find an asset that can generate long-term wealth, not merely short-term returns. Here are some more details from the Forbes’ Top 100 Brands list:
United States, Germany, Japan, France and Switzerland had the most brands on the list. The industries which more represented the most were technology, financial services, automobile, consumer package goods, luxury and retail. The biggest gainers were Facebook, Netflix, Google, Amazon and Citi. The biggest losers were IBM, Coach, Caterpillar and Siemens.
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“Right Type of Company”
While it might be nice to purchase the products or services of any of these corporations on the Forbes’ list, investments are a different matter. You might search for a brand new pair of shoes on Google, but that does not mean that Google will pay healthy dividends.
According to investing expert Igor Cornelsen– “finding the right type of company that you can trust with your money is the name of the game.” When you buy a stock, “you’re literally buying a piece of a company.” It is important to do your research.
How long has the management been in place? Mr. Igor Cornelsen explained that “a company that frequently has trouble keeping the same CEO at the top for very long, probably has something going on behind closed doors.”
What is the company’s history? “Some companies are cyclical. Meaning there will be times when the company is more profitable, and times when they are less than profitable,” according to Mr. Cornelsen. Find the best asset, which fits your needs, not Forbes’.