The company we’re presenting as a High Conviction investment is one of the world’s most well-known and established brands. It was founded in 1894, and has generated double-digit returns for decades. And because of a recent rise in the price of one of its main ingredients, its share price has come down to a level that makes it an attractive buy.
In this issue, we provide updates on several current recommendations in the portfolio that have fallen in value. Some of these are world-class companies that dominate their respective industries. One is not. The distinction provides a good lesson in when to sell and when to hold.
There has never been a more powerful consumer brand that is more beloved than Coke. And it’s been a great investment… $40 invested in 1919 would have turned into more than $600,000 by now. In today’s issue, Porter explains why…
To answer a reader’s question, Porter does some research on Philip Morris International and discovers that the nicotine maker produces a great return on its tangible assets – and manages to buy them with very cheap debt. His conclusion? That’s a great business.
Can a company that sells weight-loss drugs and a company that sells chocolate and candy both co-exist and both succeed? In this Daily Journal, we explore how Novo Nordisk and Hershey lose or win in the new world of fat shots.
There is no excerpt because this is a protected post.
What should investors do when facing a lost decade in future equity returns? Find businesses that are the absolute masters of capital allocation, creating enormous value by investing their cash flows in the best possible ways.
In this issue, we provide updates on several current recommendations in the portfolio that have fallen in value. Some of these are world-class companies that dominate their respective industries. One is not. The distinction provides a good lesson in when to sell and when to hold.
Like it or not, stocks are now so expensive that it’s virtually certain that equity returns on the S&P 500 will not be very attractive for the next decade. But if you hold great businesses and if you’re prepared to hold them for the long term, then there’s nothing to worry about, says Porter.
Selling shares too soon can be worse than buying poor-performing shares. No matter what happens in markets or the economy, great businesses tend to do well over the long run. It’s almost always a mistake to sell them.