"We have to look at the brands and ask, what are the best-known companies?
What are the best-loved brands in the world?
So many of our best stocks are those companies."
Out of all the traits of a Rule Breaker stock, this one is the most straightforward. Despite this, many investors fail to own the great brands of their lifetime.
Strong Brand = Trust
Brands build trust through consistency and quality. When customers think of a particular industry, the brand leader immediately comes to mind.
Phones - Apple
Coffee - Starbucks
Coolers/Mugs - Yeti
eCommerce - Amazon
Shoes/Athletic wear - Nike
If you look at the stock charts of these businesses, you will see that shareholders of the world's best brands have been handsomely rewarded.
Do you want to discover the next great brand?
This is one of the reasons curiosity is such a good trait for successful investors.
When you notice people using new brands, be inquisitive.