Quality Growth Boutique

Consumer Staples: Orphans or Heroes?


Legendary baseball star Yogi Berra opined that, “You don’t have to swing hard to hit a home run. If you got the timing, it’ll go“. That may work in baseball, but in the world of investing, timing is a difficult, some say an impossible skill to master.

We prefer to take the long-term view when investing our clients’ assets. When seeking high quality growth stocks trading at sensible prices, we have found a select few consumer staples companies that fit well into our portfolios. Although the general market runs hot and cold about consumer staples companies and their valuations, we believe our portfolios include meaningful positions in quality consumer staples because:

  • their general earnings growth consistency means they should continue to perform well over a full market cycle;
  • they are addressing issues around changing consumer tastes, e-commerce, and other challenges; and
  • they provide a low but steady growth component that is a counterbalance to the higher-growth investments in our portfolios.

Learn more in our latest Viewpoints paper Consumer Staples: Orphans or Heroes?, authored by Douglas Bennett, Client Portfolio Manager.

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