The business of Royal Dutch Shell is one of the most impressive in the entire world. If I had to make a list of thirty buy-and-hold forever stocks, Shell would get a spot. It owns such a staggering amount of assets that I once tried to specifically tally and itemize everything it owns, it took a few days to just put the basics together. That is what happens when a single corporate umbrella controls sixteen billion barrels of oil and 40 trillion cubic feet of natural gas to account for.
When these oil majors fluctuate, as it as inherent for them to do, I caution against worry and advocate focusing on how low … Read the rest of this article!
Check out this great quote from Charles Swindoll:
“The longer I live, the more I realize the impact of attitude on life. Attitude, to me, is more important than facts. It is more important than the past, than education, than money, than circumstances, than failures, than successes, than what other people think or say or do. It is more important than appearance, giftedness or skill. It will make or break a company…a church….a home. The remarkable thing is we have a choice every day regarding the attitude we will embrace for that day. We cannot change our past…we cannot change the fact that people will act in a certain way. We cannot change
… Read the rest of this article!
I pay close attention to consumer brands for the following reason:
“The best stocks to buy create a product that nobody else can legally produce then delivers that product using super-efficient distribution channels. This results in hard-to-replicate economies of scale. The product is protected by trademarks, patents, and copyrights, allowing the company to price higher than it otherwise could, accelerating the virtuous cycle as it generates higher free cash flow that can then be used for advertising, marketing, rebates, and promotions. Most people don’t reach for the knockoff Hershey bar or Coca-Cola bottle. They want the real thing, with the price differential being small enough there is no utility trade-off on a per-transaction … Read the rest of this article!
I’m a sucker for ancient Greek and Roman philosophers that made observations about life two thousand years ago that still hold up today. One of my favorite is the observation that the Greek philosopher Epicurus famously made about “the rich man’s new vase.”
It goes like this:
(1) A rich man buys a new vase, and feels a moment of pleasure with his new purchase.
(2) The feeling of joy begins to dissipate, and so he shows his friends the new vase he bought. The joyous feeling returns.
(3) The rich man repeats this demonstration—showing the new vase to his friends—until all of his friends see it. The feeling of joy fleetingly returns … Read the rest of this article!
I have long been intrigued by the fact that the most famous value investors, ranging from Charlie Munger and Warren Buffett to Seth Klarman, have all made it a point to invest meaningful sums of their investor’s capital into Wells Fargo at various points over the past several decades.
I recently analyzed the characteristics that led to Wells Fargo’s historic outperformance, and I identified a much smaller financial institution that is publicly traded and has a fair chance of being the Wells Fargo over the next half-century.
You can access the post by subscribing to my work at Patreon, which you can find by clicking here. … Read the rest of this article!