Apple Inc. (AAPL), Starbucks Corporation (SBUX), NIKE, Inc. (NKE): Three Top Brand Stocks for Prudent Investors

Its business of marketing footwear and sports apparel on a global basis is straightforward and extremely lucrative, driven in large part by the success of the brand. At current levels, the stock is yielding around 1.30%. Management also has a tremendous track record of creating shareholder value. The stock has risen around 85% over the last 5 years and is up roughly 360% during the last decade.

The goal of this article is to get investors to re-connect with the idea that stocks are not blinking green and red numbers on a screen. Rather, they represent ownership interests in operating businesses and over the long-term, the value of a stock will reflect the success or failure of the business. By following some very basic rules, investors can avoid the majority of the pitfalls inherent in the stock market.

In order to achieve superior returns over a considerable time horizon, investors should focus on high-quality, easy-to-understand businesses that pay a dividend and possess a superior brand moat. Apple Inc. (NASDAQ:AAPL), Starbucks Corporation (NASDAQ:SBUX) and NIKE, Inc. (NYSE:NKE) all fit seamlessly within this framework along with dozens of other companies that you may be overlooking.

Ryan Glosier has no position in any stocks mentioned. The Motley Fool recommends Apple, Nike, and Starbucks. The Motley Fool owns shares of Apple, Nike, and Starbucks.

The article 3 Top Brand Stocks for Prudent Investors originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.