Pick-and-Shovel Investing: What Is It & How Does It Work?

“By investing in companies that provide the tools and infrastructure for an industry, rather than directly investing in the industry itself, you are less exposed to the fluctuations and risks of that industry,” sums up Mina Tadrus, CEO of Tadrus Capital, a quant investment management firm.”

“On the other hand, “One disadvantage is that it may not provide the same level of return as directly investing in the industry itself,” Tadrus adds. “While pick and shovel companies may benefit from the growth of an industry, they may not see the same level of return as companies that are directly involved in the industry.”

Source: SuperMoney

Author: Lacey Stark

Continue reading here: https://www.supermoney.com/picks-and-shovels/

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