Investing in brands is often a long-term strategy that relies on fundamental analysis (i.e., the health of the company, its direction and other socioeconomic factors).
We can analyse balance sheets, company ambitions and how external legislation will affect how a brand will fair over the next 12 months or longer.
A lot has changed in the last 12 months, influencing the brands and companies you should consider investing in. Here we bring you some insights for investing in 2021 with our seven top picks.
How Can I Invest in Brands?
Since this is a quiet lengthy article, we have added a table of contents for easier navigation.
To be technically correct, you can’t really invest in brands. All you can get involved in are listed companies (brands and companies are not the same thing but are often used interchangeably – which we will do as well). To do this, you need to buy stocks and shares in the brand on a stock market platform.
In the past, you would have needed your own stockbroker to make this happen. But thanks to tech and new apps, anyone can open a new trade as long as they have a device and a WIFI connection.
The same easy access to investing is available in other areas too. You can make money from stocks and other assets without having to actually own it, known as CFDs. Read these updated guides on CFD in 2021 for more information on CityIndex – and also check out crypto trading, Forex trading of currencies and other investment opportunities.
What Brands Should I Invest In?
We’ve been looking to the future and have picked out seven top names that could be worth your investment in 2021. These companies could perform well and help you make a profit. Your investment is always at risk when buying into these brands!
Etsy is an online platform that helps everyday people own their own eCommerce store. Users can sell almost anything and everything on Etsy as a side hustle or as a full-time income. The use of the platform is increasing due to rising unemployment in 2020 and growing entrepreneurship among younger age groups.
Tesla has big ambitions, whether it be electric vehicles or landing on Mars. Some of their plans may be outlandish and exclusively for a small population of the super-rich, but the company is a success and looks set to keep growing.
One of the companies you probably didn’t expect to see on our list is Ford. Ford should be considered for your investment portfolio because of their latest work on a range of electric vehicles.
Whereas most people won’t be able to afford a Tesla vehicle, Ford will make electric vehicles that are more accessible to a larger proportion of people in 2021. Moreover, government legislation tackling diesel cars will catapult their USP further.
4. Fiver International
Fiver is one of the top online freelancing platforms, allowing talented professionals to connect with business owners and work on one-off or short-term contracts. It is the future of work as everything can be done remotely with payment safety for all parties.
Fiver is already exceptionally successful and is one of the very few freelancing platform brands that you can buy into right now.
For similar reasons to those mentioned above when discussing Etsy, WIX is another brand that is helping new entrepreneurs and small businesses. Users can build their own business website on the same day and help take entities online quickly. Use of their services increased over 2020, and those users won’t be going anywhere fast in 2021.
6. Beyond Meat
We’re all aware of the rise in veganism and vegetarians over the last years. And even people who eat meat and choose to have some meat-free meals each week to help the environment.
Beyond Meat is one of the stellar names behind this growing trend, and they are listed on the stock market. They have started appearing in big-name supermarkets, and their products are found in more places than ever. Expect more of the same in 2021.
7. FedEx Corporation
FedEx and other delivery and logistics companies had their work cut out in 2020. This workload is set to continue at high levels as 2021 begins in a similar fashion. Don’t be surprised to see the share price of FedEx grow over 2021 as they adapt to meet unprecedented demands for freight and air deliveries.
Can Investing in Brands Make You Rich?
Most people wanting to invest for the first time hear stories about people getting rich quick from a single investment. These instances are super rare, and pretty much impossible if you choose companies that are already valuable.
In fact, investing is not supposed to be a get-rich-quick strategy. Investing in brands should be done with a long-term vision. As the brand and company grow and become more successful, the value of its stock will increase slowly.
That’s why market kings like Warren Buffet claim that the stock market is simply a way for patient people to take money away from impatient people.
Do I Need a Lot of Money to Invest?
If one share of a company costs a couple of hundred pounds, you might think you need a couple of hundred pounds to invest in that company. Sounds logical, right? Well, the truth is you no longer need to buy whole shares of companies, and you can purchase proportions of single shares on many popular trading platforms today.
The modern world of investing in the stock market has enabled almost anybody can enter into this sphere with some spare income. Always remember your investment is at risk.