Investment gurus have forever used Peter Lynch’s “buy what you know” theme on long-term investing. I’ve read entire investment newsletters that gave me a minute-by-minute report on everything a person did during his day, just to make a point about how many name-brand products pop up in a typical day — and thus why you should buy the stocks associated with those brands.
Sure, grocery stores like Kroger (NYSE:KR) and Safeway (NYSE:SWY) have taken their toll on that theory, eating away at the profits of a number of name-brand manufacturers … but they’ve also helped sort out which brands have the stuff to stay on top.
While some store-brand products are an acceptable facsimile (thanks to a lower price), others just don’t stack up and can’t crack our fierce loyalty. You might be willing to skimp on store-brand flour, for instance, but you’ll die before you dunk anything other than honest-to-God Oreos in milk — and that’ll never change.
That makes these five companies absolutely “gotta-have” stocks in the consumer portion of your portfolio: