Another Boring Business That’s a Consistent Moneymaker
There’s nothing like making money from a boring business. Several people I knew in college went on to work for consulting companies, traveling all over the place advising corporate customers how to improve their businesses.
The consulting business is an odd industry. I’ve always found it to be very boring, and I’ve never relished the lifestyle of traveling a lot and giving presentation after presentation. Unless you own a company, why would you want to work extremely hard at helping build someone else’s business?
Anyway, the consulting trade is a thriving industry where thousands of over-educated and under-experienced professionals give expensive advice on how a business can operate better. How could a bunch of strangers know your business better than you do? I guess people struggle with that question, then hire management consultants anyway.
The one area of the consulting business that seems to offer an endless supply of customers is litigation/regulation. The money always flows if a business is experiencing a trademark dispute or needs help complying with the latest securities legislation.
This is why companies like Huron Consulting (NASDAQ/HURN) have done so well. Pull up a two-year stock chart on this company, and you’ll see its amazing success on the stock market. It is truly amazing considering it’s such a boring business. I understand why China stocks are hot, but not why the consulting business is.
Regardless, a wealth creating company is a wealth creating company. Huron Consulting just broke through the $55 per share level. When you come across a company with a stock chart like HURN’s, it’s always worthwhile to do some further investigation. HURN’s stock is like a ruler pointed up at a 45 degree angle. It’s been an outstanding, consistent wealth creator.
This means something very important — institutional investors really like the stock. Nothing goes up forever, but, in my experience, stock patterns like this often continue the trend for long periods of time.
