In this multi-part, shallow dive into investing and my own investments in the stock market, I highlight those industries in the following two sectors:
Real Estate – This sector, which, I understand, like Energies, Materials and Utilities, also makes up ~3% of the market, consists of businesses that develop, own, operate and/or otherwise manage real estate properties and infrastructures on commercial, industrial and residential fronts. Routinely influenced by demographic trends, economic conditions, interest rates, factors such as the real estate market cycle and government regulations also play a part in it.
An important segment of it is the Real Estate Investment Trust one, which comprises companies that own, operate or finance income-generating properties. Apparently established by the US Congress in 1960 to give investors, large and small, access to real estate through them, these REITs are required to distribute a significant portion of their earnings as dividends to shareholders. As such, they are my way of owning real estate in both the US and Canada, without any of the headaches of being a landlord.
These entities, from American Tower Corporation, which I understand owns, operates and develops wireless and broadcast communications infrastructure, through Prologis, which I understand specializes in logistics space to Simon Property Group, which I understand develops shopping, dining and entertaining retail properties. Collectively, they seem to operate in everything from healthcare facilities to office towers and from shopping centers to apartment buildings. I understand mortgage REIT-related players, which specialize in this type of trust, are found in the financials sector.
Another segment features Paramount Group and PulteGroup, which acquire, develop and sell property and/or land for commercial, industrial and/or residential projects.
Other companies provide various real estate-related services such as brokerage, property management, consulting and technological solutions. Last, but not least, are those companies such as the banks of the Financials sector, that I understand provide financing services, including mortgage origination, servicing and securitization, and real estate transaction-related borrowing and lending.
Staples – This defensive and stable sector, which I understand makes up ~8% of the market, consists of businesses that deal in products or services considered essential – as well as alcohol and tobacco – and are so ingrained into everyone’s spending habits that their purchases are pretty much automatic, and are made regardless of economic conditions.
The Food (including that of the “fast” type) and Beverage segment of this sector, is where the likes of Coca-Cola and PepsiCo are found, along with those that deal in alcohol like Truett-Hurst and tobacco like Phillip-Morris. In Canada, grocery giants Loblaws and Metro are in my staples growth stocks portfolio, along with Dollarama and Alimentation Couche-Tard.
Another segment, Household and Personal Products, features the likes of Colgate-Palmolive and Kimberly-Clark, along with Church & Dwight and Procter & Gamble, which all manufacture and sell cleaning, paper and basic personal care products. Others in this segment such as Estée Lauder focus on hair care, skin care, makeup and fragrances.
In part eight, the last of this multi-part post, I’ll cover the Technologies and Utilities sectors and how I have invested in them both directly and through the use of ETFs.
Disclaimer: The information contained herein should not be construed or considered professional advice. Nonetheless, thanks for reading! If it resonates, there’s “plenty more where that came from” on Facebook, Instagram, YouTube ‘n’ Twitter.