In times of inflation of production costs, strong brands enable Pricing Power and preservation of margins. Definitions & Examples...
In an economy that is 100% globalized and currently experiencing soaring costs, a company with Pricing Power can pass on and increase its sales prices without losing market share. Warren Buffett, the best global investor for decades even thinks that Pricing Power is more important than management.
What we have discovered since inflation in 2022 is that this Pricing Power is no longer an asset reserved for Luxury companies. If these weather the crisis very well and increase their share prices, companies in other sectors also benefit.
If Pricing Power can be explained by several reasons such as the small number of competitors or substitute products on the market, such as the company's unique know-how or a strategic patent, it is almost always due to the desirability of its brands around the world that the company remains or becomes a leader in its sector. It then outperforms all its competitors on the stock market!
In an all-digital economy, we have designed an index and rankings of the companies that hold the most searched brands on the Internet (growing over the last 5 years, on Google worldwide).
Our investment approach is therefore simple. From your own entry point (a brand, a listed company, a sector of activity), you select the stock market that has the most successful brands on Google then you check the analysts' recommendation with our partner marketscreener.com.
Before clicking Buy Stock on our site, you can also check the latest dividends paid by the company. You will see how these iconic brands such as COCA-COLA, TESLA, PRIME VIDEO, CARTIER, FACEBOOK MARKETPLACE, LA ROCHE-POSAY and their sister brands generate Pricing Power for their listed companies and therefore potential for stock market gains.
For information, our brand rankings on GOOGLE are by sector of activity (or sub-sector) and by month. Register for free on our site and click here to access the Top brands.
Past stock market performance is not indicative of future performance.