To Find the Best Stocks, Start With the Best Brandshttp://www.fool.com/investing/general/2013/10/14/to-find-the-best-stocks-start-with-the-best-brands.aspx Bob Ciura
October 14, 2013
Most investors are constantly on the search for great stocks to buy. A useful place to begin researching such companies is the list of the world's most valuable brands, which goes a long way toward finding which companies will stand the test of time. After all, the world's strongest brands have built fortress businesses that can clearly thrive, even when the economy takes a nosedive.
Brand consultancy Interbrand recently released its list of the world's most valuable brands. The report details which companies have changed human life to such dramatic degrees that their products and services are used on a daily basis by millions, and can help lead us to great stocks to buy for the long-term.
Two technology titans on top
Apple is the most valuable company in the world by market capitalization, worth about $450 billion at recent prices, so it stands to reason that the company has the most valuable brand in the world as well. Apple's growth trajectory in recent years has been nothing short of amazing: The company booked 45% revenue growth last year versus 2011 and has generated 43% revenue growth since 2008, compounded annually.
Meanwhile, Google's massively successful Android business is supplemented by its leading position in search. Google's businesses collectively raked in more than $50 billion in revenue last year. The company's growth has remained impressive, even as it balloons into one of the biggest companies on the planet. Google managed to grow its 2012 revenue by 32% year over year, and since 2008 it has increased revenue by a 23% clip, compounded annually.
In addition, future smartphone-industry growth is expected to be strong, meaning Apple and Google should continue to do extremely well in the years ahead. IDC projects the worldwide smartphone market to grow by 7.3% in 2013. Increasing demand for smartphone shipments is expected to be spread across geographies, with particular strength noted in the emerging markets. By 2017, total smartphone shipments are expected to reach 1.7 billion units, compared with 1 billion shipments projected this year.
A legendary consumer company takes third place