, Columnist
What Hoarding Toilet Paper Teaches Us About Stocks
Just as shoppers are squirreling away essentials, companies need to be socking away their cash. Investors are taking note.
Paper gains.
Photographer: Justin Chin/BloombergThis article is for subscribers only.
We don’t know how fast the coronavirus will spread, or how soon it will hit our communities, but we’d sure feel better if our homes were well-stocked with toilet paper, hand sanitizer and canned food.
The same logic applies to stock investing. No one really knows the full impact of the virus, what it will do to supply chains or how hard it will hit consumer demand. But we are starting to appreciate companies with healthy balance sheets. Cash is king once again.