What are the criteria for the classification of 'All-Weather' Stocks? Are these stocks stronger than companies with moats?
- Ashish Jain
All-weather Stocks are simple and easy-to-understand businesses. Typically, they have a long impressive track record. So, you are unlikely to find a company with an unproven business model here. They also hold a dominant market position and have a strong company culture and management.
We look at them far more intensely. These companies should be managed by people who have a growth orientation. Their business must be scalable and they still have a long way to grow. So, these are the criteria for the classification of 'All-Weather' Stocks.
And we would like to add many stocks to our recommendation list over a period of time and we are keeping an eye on them. There are about 10-12 businesses that we would like to recommend anytime. However, we haven't got that opportunity so far simply because they haven't come in our price range. Buying a great company at a fancy price may not be a favourable thing for you. And we think that All-Weather Stocks will be able to withstand market turbulence much better and we have also seen it since the launch of our recommendation service. Also, personally, I think that 'All-Weather' Stocks should be the starting point for most of the investors. So, if you have a subscription to this service, look at the 'Best Buys' and if you want to filter it further, go for the 'All-Weather' Stocks.