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I and everyone recommended Bowen
Which industry is worth long-term investment
- "Investment Jungle" Reading Notes
Recent browse a few of the investment book, my heart has been hanging nabisco bowling for answers to some questions there, and I want to answer their questions Transcription, in the end what the industry is worth long-term investment? As the "Buffett's moat," a book author Dorsey said, "Some businesses do have a great advantage, they are born to lead. Even worse again managed pharmaceutical companies and banks, in the long-term rate of return on capital also make extremely good chemical or auto parts company to shame. "In other words, there are some days in the life industry is a good industry. For those seeking long-term value investors, compounding, the greater the probability of such an industry in search of excellent companies. We invested in those investments which industries give them a long-term investment success of it? It's worth some serious exploration.
"In the world I can choose to tens of thousands of stocks, I really need to see only a maximum of 50 I do not need to buy Bell Canada or General Motors, because nabisco bowling I do not think these companies can continue to produce in the coming years has been 14% per annum to 16% of revenue. same thing also applies to the paper company's stock, because this cycle dominated industry severely affected, and agriculture, forestry, mineral revenues rarely able to provide 14% to 16% of the long-term growth potential and I do not need buy new stocks of small companies, they may be due for a competitor to enter and be consumed, so one night ruin profit margins, or worse.
I do not think that the purchase of those companies do not pay an attractive dividend stocks, I hope for the best, with the rising wealth of the company increased dividends. Like most companies, like living organisms, there is a lifetime limit. A company that is for profit, and this profit accrued to the shareholders. However, there may be such a company, as a whole, the entire group of shareholders in the company from birth to death in the process did not get anything. Some investors may be trading these stocks in order to gain a profit, but in the end, with the company in decline, others will suffer a loss, but if the company or its successor finished, the initial investment will be completely erased. "
"For consumption of peanut butter, cereals, soft drinks, or a razor blade is essentially aperiodic only that, with the end of the Cold War, these products have expanded globally. Lower product costs in the industry's leading companies with unit benefits so that it can accumulate greater profits, and thus provide more funds to promote their expansion. their market network is very powerful, can be used to promote nabisco bowling the development of new products or products obtained through acquisitions. As a leader, greater profit margins allow them to get dividends in the pursuit of growth while, while the second or third from the two companies are likely to select one.
"Another very fertile for you to explore nabisco bowling the medical field, including the industry-leading supplier of medical products stocks like Abbott, Johnson & Johnson, Novartis (a Swiss company), Hao Fu Mai - Roche (also Swiss company), Cartier Cardinal Health (Cardinal Health), Pfizer, Amgen (Amgen), etc. These are the focus of concern, has a solid franchise and excellent nabisco bowling research facilities, in my opinion, this is a wonderful area, within which the Company stock in my portfolio always account for a large part of it.
Difficult to find in the field of banking and insurance stable growth of 15%, but the existence of such growth, especially nabisco bowling recently. nabisco bowling Changes in competition law blurs the boundaries securities underwriting, brokerage, insurance and banking between creating new opportunities for the development; nabisco bowling As a result of business expansion worldwide. In this area there are many stocks to provide a stable income by about 12% to 13% annually. Of course, you should see the interest rate, because of the high interest rates tend to suppress these stock prices. Those looking for the owner's equity to provide year round high yield financial stocks, they also have a growing revenue line, to show that there is a steady growth both in the top (gross income) or at the bottom (net income). nabisco bowling I want to say again, mainly to look for industry leaders; If well managed, then the scale will be able to offer lower unit costs and a competitive advantage, that is the truth, leading to a strong merger trend now. "
"You are the key to success is to choose the point in the industry's leading company's stock, and then insisted on holding them for years. If there is a company's revenue in a year or two years, did not reach the target, whom did not need to panic, it is quite a normal phenomenon. As a company, unless they "manage their income" (which is a euphemism nabisco bowling for trying to manipulate them), otherwise it will inevitably experience a better time or a period of relatively poor. most companies, even the most good company, we must continue to invest on their own there are many companies, after three to four years, the advent of products may account for 40% to 50% of total sales, while in the pharmaceutical industry, the drug patent expiration will face competition from The so-called generic nabisco bowling competition if the old and new products on alternating updating nothing new particularly attractive, the company's nabisco bowling growth appears to slow down or pause; If the company's research and development and overall management level is still maintained at industry-leading level, then In this respect, you do not have to feel uneasy and I was in such a slowdown period, Pfizer is buying its stock, the result is that investment in my subsequent four years has quadrupled.
Very short sentence, in fact, hold deep. In human society, and what it will never become obsolete? That is, as long as humans exist, what humans need is the most basic sexual health illness and death Ting Yu, sub-level is a substance produced in order to meet these needs of humans or obtain funding activities or services. Specifically talking about is food, medicine, of course, along with the progress of mankind, there is a necessity of modern people do not have some of the ancients, such as financial, family and personal products and the like, has become nabisco bowling a basic need of life. Because these things are always relative to human existence, then one of the best companies must be able to provide a steady income and accumulated earnings figures into a huge transformation in the magic of compound interest.
People buy bonds in the big time, "Davis does not care about the bond market turmoil, he is too busy for the insurance stocks, especially those of small, strong momentum varieties in 1954, he ended up 7 years of self-employment, entered the ranks of the wealthy. every area of the market is money to be made, people down to the birthday, but Davis happens to target the most sweet and no one pay attention to that part. no exaggeration to say , the growth rate of earnings on life insurance companies in the computer industry as the future of digital processing industry, nabisco bowling pharmaceutical industry, as well as the well-known retailers McDonald's and Wal-Mart. "
But the insurance industry itself is not a profit no loss of packets industry, due to the strict control of the government, the insurance industry is a low-margin industry, and because nabisco bowling there is no difference between the insurance product itself, fierce competition, buyers do not value the brand Like other industries pay much attention, because when they buy insurance is mainly purchased from local agents there, nabisco bowling they recommend what to buy, the same insurer for any suspicion and hatred. This is Dorsey in "Buffett's moat," a book that the insurance industry is no moat because of it. However, think carefully about Buffett's investment experience in the insurance industry, I have found, perhaps not in the moat of the insurance industry insurance industry itself but outside the insurance industry, that is, who is more investment advantages, who can let float stable and sustainable income ? This is a digression, talk later.
Investors pushed up the price too high expectations, the stock can not be obtained at high excess returns. For rational investors, to obtain stable and sustainable high-yield, find timeless industry is important, but equally important is that in this industry is to buy when the market is expected to underestimate or ignore the public will ultimately nabisco bowling be successful.
Is it worth the long-term investment in an industry, the performance of an individual or a particular industry to see a family of long-term investment in their chosen career, nature is valuable, but such cases are not just a special case, it does not have universal significance . If you really want to prove worthy of long-term investments in certain sectors, we need a longer data history wider industry research. Fortunately, the investment world is a very mature, a lot of talented people rush to give us a wide variety of excellent research. For long-term stock market data for research, and achieved fruitful and has been recognized by all to be considered Wharton JEREMY J.SIEGEL (Jeremy J. Siegel) professor, he wrote, "the stock long-term investment," a sensation, And I'm nabisco bowling here to read his writing on "future investors," nabisco bowling based on the book, which is part of the book devoted nabisco bowling to study the long-term history, which far exceeded the industry average nabisco bowling return achieved results.
And this company is so lucky Who is it? That is renamed in 2003 as the Altria Group's Philip Morris (Philip Morris) company. Initially, this is a tobacco nabisco bowling company, and later under the pressure of government regulation of smoking, tobacco profits earned by buying a large number of well-known consumer goods companies such as General Foods, Kraft and Nabisco Holdings Company (Nabisco Holding). Currently Philip Morris has more than 40% of revenues and 30% of the profits from food sales.
However, Philip Morris may be slightly different, it is 1925 on the market, "When people are just starting to collect statistics and stock returns, it has become the best stock market investment options." That When the S & P 500 was born in 1957, select Philip Morris is traceable. If you start investing from 1925 to the end of 2003, the annual compound rate of return is 17%, but the annual compound rate of return from investments in 1957 was 19.75% nabisco bowling of people, a higher income. This means that the investors behind its performance in the understanding of the history, if you can make the right judgments, nabisco bowling the selection of such companies is possible, especially in the case of this company has been in existence for the next 32 years (1957-1925).
PepsiCo
Little toe ring 100 years the company has been producing lollipops, no change in its price 107 years. There are children who have experience, they see the children lollipops, anything else will be put aside and ran to it, as long as the survival of mankind, to raise a child, lollipop business is not going away, the key do you have a strong brand or laying everywhere channel capacity. Hershey also candy manufacturers, as it is with the Wrigley Company's products and the same for 100 years. Heinz is synonymous with ketchup, and most of the family's dinner table without it. Coca-Cola and Pepsi-Cola is a carbonated beverage, but the power of sustained profitability, we all have the same feelings. We can see that in these foods to the company, there is no diet meals, but mostly snacks, condiments, with its strong brand has become a profit machine.
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