Advertising, in particular, is bracing for a challenging environment, and companies have begun aggressively curbing their ad spending. Companies understandably try to spend less money when times are tough, and advertising can be a way to tighten the belt. For example, executives at Procter & Gamble recently spoke about how the company pulled back its ad spending but has also shifted dollars around, moving money out of broad television and into more digital formats, where it's easier to track return on investment.
At the moment, there are a number of highly profitable, time-tested companies that remain inexpensive and have the capacity to make long-term investors richer. What follows are four of the best time-tested stocks that can help you build generational wealth. The first time-tested company with an impeccable track record of outpacing the S&P 500 and delivering massive gains to patient investors is conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B).
The optimistic case for Spotify Technology (NYSE: SPOT) has always been that it would create an advertising network like Facebook, except for your ears and not your eyes. The company can connect listeners and creators of music, podcasts, and audiobooks with highly targeted ads from advertisers around the world, generating revenue that can be shared with suppliers. Spotify might not have Facebook's upside in terms of scale, but the potential for a very profitable, sticky business is there.