Got $200? Here's What Buying 1 Share of Each of These 3 Stocks on the Dip Could Look Like in 5 Years.
Three beaten-down consumer growth stocks -- Dutch Bros, Chipotle, and Cava -- could turn a modest investment into a powerful long-term compounding opportunity for patient investors.
Overview
I like the version of long-term investing that requires patience, a time horizon longer than the current news cycle, and the discipline to buy quality businesses when they're out of favor rather than when everyone is excited about them. Right now, three consumer names are each trading below where they were months ago, for reasons that have more to do with macro sentiment than structural business deterioration.
A basket portfolio approach of one share of each costs roughly less than $200 combined at recent prices. To be clear, this investment is not a retirement plan, but it's a great starting point.
Details
The basket approach is underused by retail investors who tend to concentrate purchases rather than spread small dollar amounts across multiple quality names. A basket reduces the pressure of being right about any single stock. If one stock takes longer to rerate than expected, the other can carry the weight. If one experiences a short-term margin squeeze, another's unit growth will still compound.
Source
Originally published at www.fool.com.