Look for companies with high profit margins.
What corporations fear is the phenomenon now known, rather inelegantly, as 'commoditization. ' What the term means is simply the conversion of the market for a given product into a commodity market, which is characterized by declining prices and profit margins, increasing competition, and lowered barriers to entry.
I've always tried to keep my cover prices on the low side. I'm more interested in getting people to read the books we publish and less interested in the profit margin.
The U. S. and European markets have become mature, profit margins are lower, and equipment isnt so new. Because profits are relatively low, it limits the willingness of companies to invest in newer equipment.
Farms and ranches contend with much more than quarterly reports and profit margins - the weather can wreak havoc on their quality of life and economic viability. When natural disasters strike, we must do all we can to assist the backbone of our economy.
Not yet have I found any better method to prosper during the future financial chaos, which is likely to last many years, than to keep your net worth in shares of those corporations that have proven to have the widest profit margins and the most rapidly increasing profits. Earning power is likely to continue to be valuable, especially if diversified among many nations.
