What is the significance of brand recognition to stock investing?

Question

What are the reasons as to why a stock investor should consider brand recognition in their assessment of an investing opportunity?

Answer 1

The identification with a particular brand is important as it creates trust amongst consumers and it can determine how well a new product of a company will be adopted. There is a higher likelihood of acceptance among consumers to new products from companies with well-known brands such as Apple or Coca-Cola which translates into better sales and growth when these companies launch new products.

Comments

I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.