Neighborhoods I'm Investing in for 2023
In investing, usually the mediocre house in a good neighborhood is a superior investment than the good house in a bad neighborhood
Sometimes you might hear an investing pundit say that he/she is investing in the “best house in a bad neighborhood”. And by this phrase they are referring to the fact that they are investing in the best-in-class stock in a tough industry/sector facing headwinds.
However, in my investing career, I’ve found that it’s usually better to invest in mediocre houses in a good neighborhood rather than the best houses in a bad neighborhood. When the entire industry is facing stiff headwinds, it’s really hard for even well managed companies within the sector to beat the market. With that in mind, let’s jump into the “good” neighborhoods I’m investing in for 2023:
Offshore energy service providers
Automotive suppliers
Select banks