Yum Brands. Diageo. Nestle. Wal-Mart. Coca-Cola. If you ever develop the urge to invest in Africa, look to buy stock in those five companies which are currently investing throughout the continent to mixed results, although Nestle is once again proving that it has the business model to make money anywhere.
I was reading through the T. Rowe Price Africa & Middle East Fund (ticker symbol TRAMX), and I was reminded of the statistic that there has never been an African-focused fund open to American retail investors that has beaten the S&P 500 because it is extraordinarily difficult to successfully predict African firms that would serve as suitable long-term investments.
Since its inception in … Read the rest of this article!
Warren Buffett’s largest stock holdings at Berkshire Hathaway might change more often than you think they do. If you pull up an annual report of Berkshire from 2005, you will see the largest stock investments listed as follows: American Express, Ameriprise Financial, Anheuser-Busch, Coca-Cola, M&T Bank Corporation, Moody’s, Petrochina “H Shares”, Procter & Gamble, Wal-Mart, The Washington Post Company, Wells Fargo & Company, and White Mountain Insurance.
By the time 2013 came around, the reported list of stock holdings contained some familiar faces, but some changes as well: American Express, Coca-Cola, DirecTV, Exxon-Mobil, Goldman Sachs, IBM, Moody’s, Munich Re, Phillips 66, Procter & Gamble, … Read the rest of this article!
The past decade has been a godsend for income investors that have owned McDonald’s stock because the profits have grown by 14.5% annually and the dividend has grown by 25.5% annually. Those $0.55 annual dividends in 2004 became $3.40 dividends in 2014. You were to able capture two things that were happening simultaneously over the past ten years while you held McDonald’s stock: (1) profits continued to grow, and (2) the payout ratio continued to grow as McDonald’s went from paying 28% of its profits as dividends to paying out 58% of its profits as dividends.
Such opportunities are hard to find ahead of time, but they can be lucrative additions to … Read the rest of this article!
Yes, this article you are about to read is a first-world problem. Throughout this past year, I have made no secret of the fact that Visa and Gilead Sciences are two of my favorite companies if you are looking to buy-and-hold blue chip stocks with well above-average growth rates. Over the past five years, Visa has grown profits at 22.5% annually. Gilead, meanwhile, has grown profits at 15.5% annually for the past five years. Even if the growth at both companies comes down a bit, it still figures to be above the 10% annual range throughout the rest of the decade.
That’s what prompted me to write highly praiseworthy articles of both companies … Read the rest of this article!
There are people in this country that make 401(k) investments by bringing up a comparative chart of the last year, three-year, five-year, and ten-year performance, and then making automatic paycheck contributions based on what had been the hottest performers over that period of time. If you don’t enjoy spending a lot of time thinking about investing, it has a certain intuitive appeal: Why not go with the five letters that can report 10% annual returns from 2004-2014 rather than the five letters attached to a 3% annual return?
The problem is this: you could performance-chasing. A fair amount of time, the reason why a particular mutual fund has done well is because the … Read the rest of this article!