Topic: How To Invest

What is Pat’s commentary for the week of October 29, 2024

Article Excerpt

As you’re no doubt familiar, as part of our three-pronged approach to investing, we recommend investors avoid companies in the media limelight. (The other two parts are diversifying your holdings across the five main economic sectors, and sticking to well-established companies). A great example of an out-of-the-limelight stock is uniform rental company Cintas. Despite its low profile with most investors, the stock has soared nearly 203% in the past five years. In fact, Cintas has skyrocketed 1,925.1% since we first recommended it at $10.25 a share (adjusted for splits) in the October 2005 issue of Wall Street Stock Forecaster. Those gains were partly due to acquisitions of smaller competitors. However, in Cintas’s case, that strategy is less risky than it appears. The company operates in a highly fragmented industry, and using acquisitions not only expands its client base but also deepens its product offerings for those clients. We expect Cintas will continue to gain new clients, particularly as it currently serves just 1..