There are worries now that the world economy is slowing down, which would be bad news for companies' profits. Share prices could fall but buy and hold investors who pick quality companies and can stay the course, could end up doing well in the long term.
This week I look at two companies that have done well for investors over the last five years. Mixer beverages firm Fevertree (FEVR) has been one of the darlings of Aim but continuing to justify an expanding valuation multiple will depend on its ability to crack America. House builder Bellway (BWY) may have seen its profits peak in the current cycle and the outlook when the government's Help to Buy scheme begins to be wound down is uncertain.
I'm more positive on brick makers than house builders at the moment and Michelmersh (MBH), the smallest of the listed brick makers, looks to be in a good place right now. Another business I like is drinks maker AG Barr (BAG), although the shares might be expensive considering its moderate growth outlook. I'm not so keen on DP Poland (DPP), which has the master franchise to operate the Domino's Pizza brand in Poland.
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