Written by Steven Chen, MBA
Source: valuestockguide.com.
Overview
Cyclical businesses are tough for both management and investors. After all, even the experts find it difficult to predict the economic cycle accurately on a consistent basis.
For long-term buy-and-hold investors like us, one solution may seem simple - just purely focus on the non-cyclical ones. But then, such a solution would make investors give up a big pie of the total stock market, as many industries, such as technology, industrial, business service, and consumer product, have to be cyclical by nature.
Wonderful businesses are rare