5 Hot Stocks That Prove Capitalism Is Great !!!

September 30, 2009

By Jim Woods, Contributing Editor, InvestorPlace

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Some of the Hottest Stocks to Buy Now are Capitalist Icons

Michael Moore's newest documentary, Capitalism: A Love Story, opens this Friday. No doubt, the famed director will skewer our free market economy.

But I'm here to tell him — and you — that there are many companies out there every day proving that capitalism is a shining example of economic supremacy and morality.

Here are five stellar examples of capitalism at its best.

Hot Stock #1 - Apple (AAPL)

One of the greatest corporate success stories ever is perhaps the quintessential "best-of-breed" technology company — Apple (AAPL). There's an almost cult-like following and near-religious commitment that many have to anything Steve Jobs and company bring to market.

Why? Well, because Apple brings to market the technology goodies that people actually want. The company didn't force anyone to buy their stuff; they just made cool stuff that people are willing to pay top-dollar for. As a result of Apple's hard work, Steve Jobs and company have become very wealthy — as have Apple shareholders.

That's why Apple is a shining example of Capitalism at its best, and why Apple is an excellent stock to buy now.

Hot Stock #2 - Google (GOOG)

Everyone who uses the Internet knows what a powerful tool Google's (GOOG) search engine is. In fact, the ubiquity of Google searches now has put the company's name firmly in our verbal lexicon. Hey, you know that you've made it big as a company when your name becomes a verb, as in, "I Googled myself."

In the early days of the Internet, the company took advantage of an absence of effective search tools. To remedy this absence, company software engineers sat down and wrote a better code. That code has become the best search engine out there, and that's why nearly every business operating online wants Google to be a key part of their advertising model. Fortunately for shareholders, as well as the capitalist who funded the venture, Google's search for profits returned a whole lot of hits.

Hot Stock #3 - Wal-Mart (WMT)

There are those who accuse retail giant Wal-Mart (WMT) of being the ultimate mom-and-pop store predator. I consider Wal-Mart to be the ultimate empowerment tool for consumers. The retailer gives millions of people around the globe access to low price goods — and by extension, creates wealth via the low-price savings dividend we all benefit from. Wal-Mart also provides millions of jobs for people around the globe.

I think Wal-Mart's real virtue lies in the fact that the company continues making solid profits. By selling people what they want, at the price they want — and by making profits for their shareholders — Wal-Mart has become of the most brilliant examples of capitalism the world has ever seen.

See Wal-Mart - Paragon of Virtue.

Hot Stock #4 -
McDonald's (MCD)

Low cost, consistency, and let's face it, some darn good-tasting burgers, fries and shakes have made McDonald's (MCD) the most successful restaurant chain ever. McDonald's has more than 31,000 local restaurants, serving more than 58 million people in 118 countries each day.

More than 75% of McDonald's restaurants worldwide are owned and operated by independent local businesspeople, making this company the quintessential example of a worldwide franchise business success. When people want great fast food at a great price, they go to McDonald's.

Because McDonald's gives consumers what they want at a price they want to pay, and because they make big profits doing so, I consider the company a precious jewel of capitalism.

Hot Stock #5 - Amazon (AMZN)

Amazon (AMZN) has become the "virtual river" for getting just about any consumer retail product you want at the lowest price possible. Books, CDs, DVDs, flat-panel TVs, pants, shirts, dinnerware, cookware, coffee and just about anything you can think of can be found and purchased at Amazon.com — and in most cases with no state sales tax and even no shipping charges.

Amazon was founded in 1994 by Jeff Bezos out of his garage in Bellevue, Washington. Bezos attracted the attention of businessman Nick Hanauer. Hanauer believed in Bezos' idea and decided to invest $40,000 in the venture. Five years later, Amazon had raked in over a billion dollars in sales.

An idea, some capital, the will to succeed and a receptive public. This is the essence of capitalism.