Boring is beautiful!
The best time to buy boring stocks is when most everyone is excited about sky rocking high flyers. They get dumped because many investors want to be in the exciting stocks. "Hell, my friends are all talking about biotech stocks at parties. I don't want to talk about my boring stocks!" This pushes their prices down to a "sweet pickings"" level. This is the perfect time to look dumb but think smart.
Utilities are often thought of as boring stocks. This article talks about some utilities you might want to consider.
Look at it this way. In high school, boys are all clamoring over the prom queen and ignore some pretty nice up and coming young ladies. Turn the clock forward ten years and you often find that the prom queen peaked in high school. The once dowdy girls have hit their stride and are looking damn good. The key to success is to get that date before the competition heats up.
Boring is coming back into vogue now that businesses and the markets are becoming uneasy about the economic future.
If you look at the stocks that Buffett owns, they are not the sexy stocks that everyone is talking about at cocktail parties. His stocks have strong balance sheets, great managements, steadily growing earnings and growing dividends. Buffett buys them and holds them long-term. A few years down the line, those stocks are often viewed as "the prettiest girls in the room" and the prom queens are often looking really badly worn.
It’s time to check out those great young ladies who are standing on the sidelines and ask the question, “Do you want to dance?”
