Always the value investor, always the contrarian......"Buy stocks when there is blood in the streets", "You want to be buying stocks when everyone else is selling'. Well today was one of those days when the stock market was all of a sudden a bad idea for many. I was actually down about $900 today! Good day to keep the eyes on the old income from investments chart. It didn't budge one dollar.
One stock that I always keep an eye on, but never seems to get cheap enough for my liking is United Parcel Service (UPS). I wanted to mention UPS today for 2 reasons, one that I found an article today that sums up what I'll call the 'kicker' on why I like UPS going forward. Another way to put this is that I see this trend as the catalyst for the growth of UPS in the years to come. One word: LOGISTICS. Basically they are doing supply chain and operations management for other firms. I first read about this trend in the book 'The World is Flat' by Thomas L. Friedman. I see this move by UPS as pure genius and a service that will pay huge dividends as the global economy evolves, and only gets more attractive as energy prices rise. If you think UPS is simply a package delivery firm, you are dead wrong. Needless to say that I wouldn't care much about UPS unless they were a solid raiser of dividends and a consistent grower of earnings, with a huge moat and brand - which they are.
Another reason I brought up UPS today goes back to the opening paragraph of this post. When do you want to be thinking about buying a company that ships packages for profit? Perhaps a good time would be when oil touches $138/barrel and every economist and his dog sees black gold going to $200/barrel. It seems that these days that the biggest bull on oil wins.
More on 'Brown' in posts to come....