Great Businesses That Cause Investors Trouble

From 2004 through 2014, BHP Billiton grew its profits from $0.86 per share to $5.18 per share, and raised its dividend from $0.33 per share to $2.36 per share. Over that same ten-year time frame, Aflac grew its profits from $2.30 to $6.20. And Aflac grew its dividend from $0.38 per share to $1.50 per share over that same period of time. And from 2004-2014, John Deere grew its profits from $2.74 to $8.63 per share, raising the dividend from $0.53 to $2.40 over that same stretch of time. These are healthy businesses in the commodity, insurance, and manufacturing sectors that over time grow profits and raise dividends like any long-term owner would hope at the time that he makes an investment.

Yet, it is my speculation that many shareholders in these companies did not experience the type of returns you would expect from this type of long-term business performance … Read the rest of this article!