SGMS Reddit Mentions | ChartExchange

The importance of buying great businesses is something everyone knows, but few people actually execute on or even really care about. The truth is that, over time, you make the most money in the stock market by investing in the world’s greatest businesses.
I know this sounds simple, and it is, yet you’d be surprised at how many investors don’t follow this advice.
## Here’s why history says they don’t.
Investing in great businesses isn’t glamorous, it won’t make you a millionaire overnight, and it’s highly unlikely that you’ll wake up to see that one of your holdings leaped 20% overnight.
Great businesses often take time to play out. The key is letting their returns compound year after year, building wealth over a period of years or even decades. But most investors aren’t interested in that. In today’s society, where folks are looking for instant gratification, they are more interested in gambling and making money as quickly as possible.
Don’t get me wrong, I’m just as interested in making money as quickly as possible, but I also like stacking the odds in my favor. Think about all the folks who constantly play the Powerball. Of course, there’s nothing wrong with that! If you don’t play, you can’t win. But the odds are certainly not in your favor (one in 292 million last time I checked).
Instead of consistently sinking my money into Powerball tickets, I would much rather figure out a way to own the land under the convenience store where folks are buying those tickets or invest in (SGMS) Scientific Games Corporation a company that has recently changed its company name to Light & Wonder, Inc. Common Stock (LNW) that gets paid when people play the lottery.
Well, during March 2020 I chose to open my child a brokerage account and I purchased 200 shares of SGMS at $5.61 per share for my two-year-olds birth anniversary, instead of going with the traditional American programming ie..(blowing money, buying things the child doesn’t need or hosting a big event he won’t even recall in a few months) And within sixteen months we sold at 82.00 per share, do the math.
## A $1,122 investment netted us $15,278 within 16 months!
That investment represents a great business. Sure, we didn’t become a millionaire overnight, but the consistent returns year in and year out plus the compounding interest surely made us more money over the long haul than any Powerball hopes and dreams would.
Of course, you can’t just buy any stock, hold it for years or decades, and expect to come out ahead. The market is littered with Enrons, Worldcoms, and Lehman Brothers. Buying and holding these types of companies led to disaster.
Instead, you have to hold the sort of companies that can be considered “the world’s greatest businesses.”. Thus I present to you, 12 Traits Of The World’s Greatest Businesses
# 12 characteristics that you need to look for when searching for the world’s greatest businesses.
**1)** ***The world’s greatest businesses sell their products at premium prices***. This all comes down to brand loyalty. Apple (AAPL) is a great example. Although cheaper alternatives exist, more people will pay a premium for one of Apple’s products. Thanks to the power of its brands, Apple has generated some of the greatest returns in stock market history. By contrast, companies that compete solely on price are constantly under pressure to keep prices (and profit margins) low; otherwise, they risk losing customers.
**2)** ***The world’s greatest businesses sell products used in day-to-day life.*** Products used in daily life — like toothpaste, food, and laundry detergent — are in constant demand. These daily purchases are also harder for a consumer to put off during bad times. This is why Proctor & Gamble [(PG)](https://finance.yahoo.com/quote/PG?p=PG&.tsrc=fin-srch) is a mainstay in many portfolios. But this also can extend beyond consumer staples. For example, millions of consumers use credit or debit cards multiple times a day, leading to steady cash flow for companies such as Visa[ (V)](https://finance.yahoo.com/quote/V?p=V&.tsrc=fin-srch).
**3)** ***The world’s greatest businesses have a global reach and appeal for their product***. A product that only has appeal in a certain region or country doesn’t have the same type of long-term growth potential as a truly global product.
Read the full article on [MEDIUM](https://medium.com/@shooutenterprises/the-12-traits-of-a-world-class-investment-74df2d8c00ba)