Companies that provide solutions to problems are often good choices for stock investors. Whether the problem affects a business or is personal in nature, there is money to be made in solutions.
Technology companies often score success with solutions to problems we didn't know we had - think smartphones, Ipads, and so on.
Other opportunities (another word for solutions) address specific and widely-acknowledged problems. There are examples in many industries, but health care stands out as a prime example.
Examples in health care include "The Pill" (birth control), Viagra and others.
One of the most talked about health care problems facing the U.S. is obesity. Regardless of how you measure it, the number of over-weight people is in the tens of millions.
Those extra pounds take a toll on our health and emotional well being. The problem transcends age, gender, race/ethnicity and economic status.
Companies that provide solutions that help people shed pounds have a huge market to tap. Here are some (but not all), possibilities for stock investors:
- Weight loss programs that provide special diets combined with lifestyle changes
- Pharmaceutical companies that offer medication to help shed pounds
- Fitness clubs that help with exercise (often combined with diet suggestions or food)
- Health care providers (doctor practices, hospitals and so on) that offer everything from nutrition counseling to surgical solutions (bariatric surgery, for example)
- Companies that provide large-sized furniture, accommodations and so on
These are just a few examples. The obesity problem is so complex that it is probably that there will be stock winners in many areas of solutions.
Avoid those that appear to offer "miracle or instant cures," since many of these are unproven or outright frauds.
Look for companies with successful track records in offering proven solutions. There may be a real breakthrough (such as the nicotine gum and patches that help people quit smoking), but avoid those the seem to come from nowhere with solutions.
Companies that provide real, effective help with shedding pounds will be around for a long time, since this is not a problem that will be solved easily or quickly.
