consumer staples

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dalco
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Joined: Thu Feb 08, 2018 6:25 pm

consumer staples

Post by dalco » Mon May 14, 2018 2:00 pm

For a long term investor is now a good time to buy consumer staples?

SagaciousTraveler
Posts: 123
Joined: Thu May 03, 2018 6:05 am

Re: consumer staples

Post by SagaciousTraveler » Mon May 14, 2018 2:07 pm

I'm assuming a bundle of Consumer Staples stocks right?

I don't dab into investing in individual sectors, however if you are well diversified through out, sure use some money to buy the ETF (free at vanguard). I'm sure it pays a nice dividend.

MrPotatoHead
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Joined: Sat Oct 14, 2017 10:41 pm

Re: consumer staples

Post by MrPotatoHead » Mon May 14, 2018 8:25 pm

Likely yes. If you are actually interested in sectors I would suggest you head to your library and look at Value Line as there premise is based on diversification, sectors/industries and then selections within those categories. So it is applicable if you are interested in individual companies or etfs.

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Alexa9
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Re: consumer staples

Post by Alexa9 » Mon May 14, 2018 9:12 pm

No! Avoid sector funds. That is actively picking part of the market. You want a passive approach that owns the whole market. There is absolutely no way to predict that consumer staples will outperform the market and could possibly underperform it. If they are predicted to do well they are already priced accordingly. If you want to beat the market you might tilt to small cap value but that's no guarantee either.
https://www.bogleheads.org/wiki/Three-fund_portfolio
viewtopic.php?f=10&t=238879

venkman
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Re: consumer staples

Post by venkman » Mon May 14, 2018 10:49 pm

The general rule here is to avoid individual stocks/sectors.

Another general rule is that you're allowed to gamble a little bit, as long as you limit it to no more than 5% of your total portfolio.

So, technically, you can put 5% of your portfolio into Consumer Staples and still be within BH guidelines, as long as the rest of your portfolio is in broad index funds. I may or may not have done exactly that last week. :happy

cheesepep
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Joined: Wed Feb 17, 2010 10:58 pm

Re: consumer staples

Post by cheesepep » Mon May 14, 2018 11:16 pm

I'm big in PEP right now. Also own small amounts of CHD.

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peterinjapan
Posts: 454
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Location: Japan!

Re: consumer staples

Post by peterinjapan » Mon May 14, 2018 11:44 pm

Regular index investing will be better than one segment. Among other things the sector ETFs are all quite expensive, costing .45% in fees.

Nate79
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Location: Portland, OR

Re: consumer staples

Post by Nate79 » Mon May 14, 2018 11:46 pm

I buy consumer staples about once or twice a month at Costco. TP, soap, etc.
:beer

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topper1296
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Location: Nashville TN

Re: consumer staples

Post by topper1296 » Tue May 15, 2018 7:31 am

I'm mainly indexed, however I also have individual stocks which includes a few consumer staple names. I would add more to a couple of them, however I'm already at full positions.

uberational44
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Re: consumer staples

Post by uberational44 » Tue May 15, 2018 4:27 pm

I personally think consumer staples are now a bad long-term bet.

-consumer staples have been saved by disruption so far, because their scale makes them nearly impossible to compete with

-unless you create an eco-system to go after them directly

-Amazon has create such an eco-system

Unilever and Procter & Gamble are moving onto Amazon's marketplace and are possibly buying advertising slots from them. Amazon don't pay for their platform and can advertise on it for free. This means that they will be able to severely undercut consumer staples with their Amazon Basics ranges across all product ranges.

The best example of this happening already is the nappies on Amazon, Huggies and Pampers are the best two brands - Amazon Basics is the third.
Marketeer investing as a hobby. Interested in modern takes on value investing, passive investing and general contrarianism.

Darth Xanadu
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Location: Middle Earth

Re: consumer staples

Post by Darth Xanadu » Tue May 15, 2018 4:40 pm

Think you can pick it correctly? If you're wrong, it will hurt:

https://novelinvestor.com/sector-performance/
"A courageous teacher, failure is."

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