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The table below shows in black and white how the Old Boomer Guard revenues have slowed in the last five years, and on the whole will continue to stagnate, whereas New Generation companies are meeting the growing demand of the emerging generations.

Are we being unfair? Perhaps, but we buy stocks, not the whole market. It is much more productive to focus on the stocks and the businesses than on the stock market. If we focus on great businesses that are tapping into this emerging demand, especially those that are under-valued and under-believed, who cares what the Old Guard does over the next decade.


Old Boomer Guard


5 Year Rev. Growth

General Electric

GE

3.2

Merck

MRK

1.2

American Express

AXP

4.1

Kraft

KFT

6.7

IBM

IBM

-0.1

Wal-Mart

WMT

9.4

Harley Davidson

HOG

-2.1

Microsoft

MSFT

9.7

McDonalds

MCD

4.1

S&P 500

7.5

New Generation


5 Year Rev. Growth

Amazon

AMZN

39.0

Apple

AAPL

28.8

Ross Stores

ROST

10.6

Chipotle Mexican Grill

CMG

33.4

Children’s Place

PLCE

15.4

JM Smucker

SJM

22.4

Tree House

THS

16.6

Boston Beer

SAM

13.9

Whole Foods

WFMI

15.8

Aerospostale

ARO

20.7

Disclosure: We hold ROST, CMG, PLCE, SJM, THS, SAM, WFMI AND ARO in our model Beacon Master Portfolio

Source: Where Has All the Revenue Gone?