I promised you the surest, most direct path to profits I could find when I started Total Wealth.
Today I'm going to keep that promise with a look at one company making "must-have" products that are so important to Amazon.com Inc. (Nasdaq: AMZN) that Team Bezos could not have risen from $290 a share three years ago to around $1,300 today.
At the same time, we're going to use today's column to continue a conversation we started last week about why some companies, like the one we're going to talk about in a few moments, mean bigger profits, faster wealth creation, and less risk.
Most investors will never catch on, of course.
They're so focused on finding the next gazillion-dollar widget or high-flying tech darling that they risk completely missing the biggest profits in today's markets (again)!
How is this possible?
Wall Street wants you be impatient, naïve, and completely aware. They spend billions encouraging investors to speculate by selling a get-rich-quick mentality when, in fact, it's often the most mundane of things that result in ginormous profits.
Things like... cardboard boxes.
Most investors have never given 'em a second thought, but they should.
Cardboard boxes are the one "commonality" tapped into the greatest retail explosion in recorded history: online shopping. According to BigCommerce.com, 96% of all Americans with Internet access have purchased an item online at least once in their lives. That's a staggering 310 million people.
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Approximately 80% of Americans cite making a purchase in the last month... 30% in the last week, and 5% in the past day... That's over 16 million people having at least one package being delivered every 24 hours in America alone.
Every one of which has to come in - you guessed it - a cardboard box.
Online shopping has increased a staggering 430% from 2000 to 2015 and will be worth an eye-popping $683 billion in sales by 2022, according to Statista.
Studies from Freedonia show that e-commerce suppliers like Amazon, or other third-party sellers, are purchasing an average of two-thirds of all boxes manufactured today. Amazon Prime, which added 25 million members from September 2016 to September 2017, has contributed significantly to this because of the need for expedited shipping for everything from toilet paper to tissues.
Not too long ago, in 2000, the average cardboard box maker produced something on the order of 3.1 billion square feet worth of boxes. Today that figure stands at 4.2 billion square feet, or more than enough to cover the entire city of Detroit.
I get asked a lot why retailers don't adapt.
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.