What Did You Buy Today?

[fenders53]

I am preaching to myself as much as anyone else here but I really feel we have to look at the consumer non-durables with eyes wide open. When I was young it was just inconceivable to think a brand like Coke, Heinz, Anheuser-Busch, Miller, Phillips Morris, Colgate, Kelloggs or even Proctor & Gamble could be anything short of dominant in their industry in my lifetime. EVERYTHING changes when the margins come under pressure. These are the stocks we are attracted to because of their reliable dividends. GE, ATT and Sears were also no-brainers. I'm no longer so confident even five years forward. I am keeping my bets small in any company that doesn't have a significant moat to defend their turf. We collectively seem to be good about diversification and I think that is going to be FAR more important going forward. It's clear the ability to afford national advertising is nowhere near enough. Finding the dominant companies of 2030 now is our challenge.