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Long Live the 1%: Buy Whole Foods

Stocks in this article: WFM LULU TSLA P RL

Investors should heed similar advice. I go a long way to making this point when I provide bullish takes on stocks like Lululemon (LULU), Ralph Lauren (RL) and (AMZN). Why spend your time railing against bubbles, momentum stocks and apparently bad business models when you can put that aside and buy stocks that actually go up?

10 Best-Performing 'Dividend Aristocrats' >>

Take what the market gives you and make it work in your favor. You're not going to change the system, so get off of your high horse and stop taking the easy route of complainer. It's much easier to poke fun at Mark Zuckerberg, call Jeff Bezos a bad CEO, spread the meme that Pandora (P) can never turn a profit and blame the rich for your lack of wealth than it is to bust your hump to create Facebook, invent e-commerce and disrupt an entrenched industry like radio.

As Rage Against the Machine noted: Now renegades are the people with their own philosophies/They change the course of history/Everyday people like you and me.

If you want to be a renegade, stop calling Whole Foods Market (WFM) "Whole Paycheck" and take a look at what the company actually does and its stock.

Like LULU and TSLA, Whole Foods targets a niche. In this age of the 1% and a 99%, you're better off serving an affluent niche than you are the less well-off masses. You're better off with customers who do not have to ask how much something costs. And, when they find out, they don't put the item back on the shelf.

Going after this market and serving it well sits at the core of why stocks like LULU, TSLA and WFM have performed better than, and should continue to perform better than, stocks such as Gap (GPS), Ford (F) and the Safeway's (SWY) of the world.

It's no surprise that Whole Foods locates no less than three stores from my not-all-that-affluent home in very affluent Santa Monica and a total of seven stores within five miles. Manhattan counts six stores and another under development on 57th Street. The same strategy applies in San Francisco where Whole Foods has five locations and is set to add two more. If you survey Tesla showrooms and Lululemon outlets, you'll see the same type of approach.

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