I receive emails all the time from people who say: “I only want to invest in safe stocks with a good dividend.”
— Jeff Yastine (@Jeff_Y_Guru) January 30, 2018
Investors and stock analysts on Wall Street seem to have almost totally surrendered the entire retail sector of the American economy to Amazon. That’s been especially true since Amazon took over Whole Foods.
However, one courageous investment writer dares to express a contrarian opinion. He wrote an article outlining how companies could compete against Amazon in the retail space. Nobody knows yet whether or not they will, but they could. That’s especially true if certain companies partnered with each, each leveraging their separate assets to go against the online retail giant. Read this article at stockgumshoe.com to know more about Jess Yastine
That lone voice in the wilderness is Jeff Yastine, editor of the Total Wealth Insider newsletter from Banyan Hill Publishing. Yastine spent over two decades as a prominent financial journalist. As Senior Correspondent for PBS Nightly Business Report, he was nominated for a Business Emmy Award. He also interviewed many business and investing experts, including Warren Buffett, Richard Branson and Michael Dell.
Yastine points out two companies that have extensive warehouse and distribution center networks around the United States that an enterprising tech giant such as Google could partner with to compete with Amazon’s ability to ship items quickly to consumers within the country, especially through their highly successful Prime program.
The first of these companies is of course eBay, the company Amazon and Jeff Bezos once competed against fiercely. Although not as large as Amazon, eBay has evolved far beyond just facilitating auctions for private parties. They have many customers and many sellers. And they a strong offline delivery infrastructure.
The second is Grainger, which sells many types of industrial products across many diverse markets around the country. It took owns a lot of distribution infrastructure around the country that could be used to store items until ordered online. Read more about Jeff Yastine at Bloomberg
And the Kroger supermarket company is well-positioned to compete against Amazon even though their stock price went down 35% when Amazon announced its acquisition of Whole Foods. They have 3,000 stores around the country, and they are beginning to implement no-cashier technology to keep their labor costs low. Plus, they sell a broad range of food products that are more in demand by most American consumers. Whole Foods is oriented toward health and organic foods. If Amazon expands much beyond that, they will be diluting the Whole Foods brand. But the growing popularity of organic foods is putting them into regular supermarkets, and that is where most Americans shop for groceries.
Jeff Yastine specializes in writing about value stocks for his readers to buy before their market prices go up to their true value.
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