Eventually the wardrobe that worked throughout college will have to be upgraded for most students when it comes time to enter the workforce. There is no reason not to use that experience to help you become a better investor. As a matter of fact, there is every reason to utilize it to become a more successful investor. It is all part of legendary investor Peter Lynch’s advice to invest in what you know.
That has been pointed out in many previous articles on this site.
It should come as little surprise that both Peter Lynch and Warren Buffett, another legendary investor, used to own large amounts of Nike (NYSE: NKE), the apparel maker. Buffett is also a major shareholder in Wal-Mart (NYSE: WMT), which sells a wide range of clothes and shoes. There are many other dedicated companies for specific sectors of the apparel sector that are doing well.
VFC Corp. (NYSE: VFC), which makes Timberland boots and North Face, is up nearly 40 percent for the last year of market action.
A major factor VFC Corp. for rising so much is due to its growing sales in China. That is the major market for many fashion stocks. China has more people, more purchasing power, and more spent on luxury goods than any other nation. As its economy is growing faster than any other major country, there is no reason to expect that to change.
That is why China is a huge market for Ralph Lauren (NYSE: RL) and Michael Korrs (NASDAQ: KOS), among many others from around the world. For those looking for high growth from a small cap in Asia, Premiere Opportunities Group (OTC: PBBL) just bought Avani Holdings, LLC. About the move, Chris Giordano, the Chairman and President of Premiere Opportunities Group, noted that there is a “substantial market for the Avani product in Southeast Asia…” A market like China and others in Asia could have a tremendous impact on a small cap positioned as well as Premiere Opportunities Group is now with the acquisition of Avani Holdings, LLC.
There is much to be said for investing in a wardrobe built around the classics such as a blue blazer or black cocktail dress.
Some things just never go out of style. The basic cut for a man’s suit has been around since the early 1800s. Sir Edwin Hardy Aimes, tailor to Queen Elizabeth, once stated that, “”A man should look as if he has bought his clothes with intelligence, put them on with care and then forgotten all about them.”
An investment portfolio should resemble that due as buying with “intelligence” requires careful research, there must be “care” is selecting the stocks that form a portfolio, and “forgotten all about them” means not worrying about the ups and downs of the stock market (or fashion) and investing for the long term.
There are many clothing stocks that fit those criteria. Ralph Lauren, Nike, Coach (NYSE: KOH) and others like that are solid blue chips. Entities like Premiere Opportunities Group moving into Asia with shrewd purchases have tremendous growth potential. Nike, like a black cocktail dress or blue blazer, will always be around. The same is true for stocks from the fashion industry.
Do you invest in clothing stocks?
Photo Credit: foto76
Jonathan Yates is a financial writer with degrees from Harvard, Johns Hopkins and Georgetown University Law Center. While much of his career was spent working for Members of Congress on Capitol Hill, he was also General Counsel for a publicly traded corporation; and worked in the research department of a brokerage house.
Brian @ Luke1428 says
There are clothing stock positions in my mutual funds. I’ve always viewed clothing retail as trendy, very up and down industry, so I’ve pretty much stayed away from investing in one individual company. Perhaps that’s an incorrect view and I’m missing out on something.