One criterion to consider when deciding to invest in shares is whether the company provides products that meet a basic human need.
Basic human needs don’t change. People have to have water (liquid), food, clothing, energy and shelter, cleanliness and transport. Companies that provide for these needs, own great brands and have international distribution tend to remain relevant and stable over the long-term.
Companies like P&G and Coca-Cola are examples of businesses that provide for basic human needs. They are some of the oldest companies on the stock exchange, and they continue to benefit from growing populations and the growth of global consumerism.
Warren Buffett has bought shares in companies like Coca-Cola for most of his investing career.
Coca-Cola serves 1.9 billion servings a day across 200 countries. The number of servings is likely to continue to grow as the 2015 global population of 7,4 billion increases.
People around the world trust Coca-Cola to provide them with safe liquid refreshment anywhere they go. From an investor perspective, Coca-Cola has paid a dividend every quarter since 1920, and they have increased dividends every year since 1954. As people around the world continue to quench their thirst, the dividend income that Coca-Cola provides could unlock the value of compounding and creates an opportunity for long-term wealth creation.
At AXIAM, our focus is to provide our clients with a growing annual income through dividends, and one criterion we use is to invest in shares of companies that have provided for basic human needs over time. Sign up to our newsletter and follow us on Twitter to learn more about our strategy to grow wealth, or contact our fund management team to invest.