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To print article, click Print on your browser's File menu. Go back Posted 4/9/2005 |
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Related Resources What's your time worth? Find out! |
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Extra Today's winning companies value our time I find myself shifting dollars from companies that waste my time (like Albertson's) to those that respect it (like Whole Foods). Maybe your own spending habits point to potential investments. By Scott Burns Is there an investment message in our checkbooks? Very likely. Since consumers account for 70% of the economy, changes in how we spend are the make-or-break factor for most companies. With that in mind, I used my Quicken files to see where the Burns family is spending more (and less) money. Don't think of what follows as stock tips, because there are a zillion reasons Burns family spending may be different from what others do. But if your checkbook and credit card statements contain a similar message, you may have the nugget of an investment idea. Here's what I found. Whole Foods vs. Albertson's Until recently, Albertson's No more. Albertson's management reduced staffing at its check-out stations, turning their stores into Hotel Californias. As the Don Henley lyrics say, "You can check out any time you like, but you can never leave." Albertson's decided to save payroll dollars by wasting its customers' time. So I now shop at Whole Foods Market
Exxon Mobil, Target, Nordstrom win Similarly, my gasoline purchases have gravitated toward Exxon Mobil Among retailers, Target For travel, Southwest is hard to beat For most of my first 15 years in Dallas, I was a loyal American Airlines New habits redirect dollars Before the World Wide Web, my book purchasing was scattered over bookstores big and small. Today, Amazon.com The last two cars we've purchased have been Toyotas, a 2003 and 2004 Prius. We sold the 2004 so that someone who drives more than we do can reap the better mileage. Our last American car purchase was a 1997 Jeep Grand Cherokee, which we still have. That doesn't auger well for General Motors The currency of time One indication that these observations are shared by many is that Albertson's, AMR, GM and Ford were among the 20 NYSE stocks with the highest short positions in mid-March. Is there a connecting theme in these shifts? You bet. The companies that capture our dollars are the companies that conspicuously respect our time. Increasingly, companies must not only compete on price and quality, they must also recognize that all of us -- regardless of age or income -- are pressed for time. (Full disclosure: The bulk of my money is invested in index funds, but I am a direct shareholder in ExxonMobil and several other oil companies.) See Scott Burns' Web site. |
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