Paul Mampilly began working on Wall Street in 1991 at Bankers Trust as a portfolio manager. He has been picking winning stocks ever since. Fortunately for ordinary investors, however, he has stopped managing funds for American hedge funds and the bejeweled royal families of Europe, and now shares his insights and advice with the people who real his investing newsletter, Profits Unlimited. The newsletter is put out by Banyan Hill Publishing, with Paul Mampilly as researcher and editor.
Recently he wrote an article on a bull market nobody on Wall Street is paying attention to, though it relates to one of the megatrends in investing Paul Mampilly has pointed out before. That’s because the bull market is in something that’s of no interest to anybody outside the millennial generation. It’s in sneakers or athletic shoes. Many people collect the special editions. It’s a new class of collectibles that began just in the last twenty years. Over the years, the athletic shoe companies have paid famous athletes to wear and endorse their shoes. As an outgrowth of the endorsement, these big name athletes, mostly basketball stars, they have created unique designs put out in limited editions. Many people support themselves by buying the shoes when they’re first released, then selling them for a profit when they’re no longer available and the price has gone up. Visit Paul at stockgumshoe.com to learn more.
Not long ago, dealers could have made 900% on a pair of Air Jordan 2 Retro “Don C” shoes. A pair of Air Jordan 10 Retro “Double Nickel” shoes could have returned 426%. You wouldn’t want to actually wear a pair of these shoes outside to play a game of pickup street any more than you’d stick a rare stamp on an envelope and throw it into a mailbox or drop a rare coin into a vending machine to buy a candy bar. Although Air Jordans have been popular for many years, the LeBrons are now the most expensive and collectible.
Thanks to this trend, the three major athletic shoe companies are flourishing as well. They’re Nike, Kering (the company that owns Puma) and Adidas AG. For the last several years, Adidas has gone up the most, 185% in price. Kering’s stock has gone up 134% while Nike had advanced 71%. By contrast, the S&P 500, although in a bull market, has gone up just 40% in the same period.