These Stocks Can Add Gravy to Your Portfolio
We highlight three stocks that can provide extra flavor to your core investments.
The turkey might be the reliable stalwart of most Thanksgiving tables, but it is often the gravy, stuffing, and other extras that end up being the stars of the meal. It can be much the same thing with an investment portfolio.
The bulk of most people's equity exposure should be a solid, reliable core--the turkey. It could be a broadly diversified index fund, an actively managed holding, or even a small portfolio of stocks with great competitive advantages and a solid business model. This main dish of equity holdings is there to provide the bulk of a portfolio's sustenance. There is of course still going to be some risk, but the hope is that these stocks with wide or narrow economic moats will be able to withstand economic downturns better and be able to throw off free cash flows for years into the future.
Jeremy Glaser does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.