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NEW YORK ( TheStreet) -- Why are mediocre stocks so popular when there are so many great ones out there ready to be discovered?
That is the one question I keep posing to myself day after day after looking at so many portfolios full of stocks like
Johnson & Johnson(JNJ),
Microsoft(MSFT) and on and on.
They might be good companies: I shop at Lowe's. But if you are looking for growth or income or even just staying even with the market, they just are not going to do it for you anymore.
But investors keep stuffing them into their portfolios, and this has to be at least one reason why: No investment adviser ever got fired for recommending
General Electric(GE) or
So most investors really have to make two decisions: Which stock to buy, and which guru to follow.
There's no doubt lots of investors feel way more comfortable with those big, stodgy names. Ditto for the televised pundits.
But some of these companies are so big, they have long since run out of room to grow. Attention Wal-Mart investors: I'm talking about you.
Tractor Supply(TSCO - Get Report)?
Unless you are reading my newsletter or listening to my radio show, you've probably never heard of it. The pundits are certainly not touting the fortunes of a TSCO, chain store whose major claim to fame is selling farm implements and goat food to yuppies.
If that is the case, you have missed out on one of the great stocks of the decade. A stock that continues to hit new all-time highs and blow away the performance of Lowe's and
Home Depot(HD), and is still a stock to consider.
Data from Best Stocks Now AppPerformance: Over the last 10 years, TSCO has delivered total returns of almost 24% per year to investors while the market has delivered 5.4%. Over the last five years it has delivered 46% per year while the market has delivered only 8% during the same time frame. Over the last three years TSCO has delivered a whopping 51% per year to investors while the market has delivered 14%. Over the last 12 months, TSCO is up 37% while the market is only up 17%.
Data from Best Stocks Now App