Buying into the big brands
Springwise has an article about a virtual stock investment portfolio based on the top twenty ‘most lovable’ brands.
The concept, called MyBrandz, is an online community bringing together fans of the most loved consumer brands.
By identifying the top twenty brands, based on a proprietary algorithm, they have created a Brands Love Portfolio. This aims to test the link between brand love and stockmarket success.
Do popular brands perform better in investment terms than companies with average brands or those that have fallen out of favour?
MyBrandz claims that their Brands Love Portfolio has outperformed the Dow Jones, NASDAQ and S&P 500 indices, with an annual return of about 64 percent.
This suggests that brand value could become an important factor when aiming to identify profitable businesses in the future. The challenge for fund managers will be spotting these brands at an early stage, before they become loved by the masses.