Apple Inc. (AAPL), Research In Motion Ltd (BBRY): 3 Companies With Cult Followings

Whole Foods is the poster child of the organic food cult

Even though a myriad of scientific studies have cast doubt on claims that organic foods are healthier and better tasting than non-organic ones, a significant portion of the US consumer base remains dedicated to eating organic.

The strength of Whole Foods’ brand might be suspect, but the dedication to organic foods certainly isn’t. And Whole Foods, as the largest organic supermarket, benefits from the growing infatuation with organic food.

Other major supermarket chains, such as The Kroger Co. (NYSE:KR), have made inroads in the organic space, dedicating whole sections of their stores to organic products and carrying organic brands. Still, Whole Foods retains an edge with its larger selection and established reputation. Even though not every product sold in a Whole Foods is organic, most consumers equate the company’s name with organic foods.

It certainly isn’t cheap to shop at Whole Foods, but as the dedication to eating organic grows among consumers, Whole Foods stands to benefit.

Investing in cult stocks

Buffett’s rationale for investing in wide-moat stocks is that these companies have built-in protection against failure. Coca-Cola, for example, can survive tough times because it is the only company that can produce its iconic soft drink.

Cult stocks have similar properties. Even if competitors can make inroads into their territory, companies with cult followings can remain sold investments as consumers dedicated to the company’s products continue to buy.

Of course, as in the case of Research In Motion Ltd (NASDAQ:BBRY), a cult following isn’t necessarily guaranteed protection, especially if one cult replaces another.

The article 3 Companies With Cult Followings originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

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