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.
Welcome to the Daily Journal Sunday Investment Chronicles: All the insight from the past week that you need to know, in one convenient place… Every Sunday we’ll highlight the most compelling insights from Porter & Co., and we’ll also share the most interesting and valuable research from elsewhere in the worlds of investing, finance, and economics that we come across each week.
In this issue of Saturday Stock Screen… we share the process of how we sift through thousands of stocks to find a handful that we will then do more in-depth analysis for possible inclusion in our Big Secret on Wall Street portfolio.
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.
Compared to tech darling Google, this company is the very definition of boring: slow growth, low margins, and capital intensive. Many would argue that it’s also a pretty lousy business. But digging into the financial statements of both this company and Google makes you wonder… which company is actually better?
Most people think that P&C insurance companies will do worse as risks grow. But, as Porter explains today, those people have it backwards. Insurance companies price risk. As risks increase, prices rise. And that means profits rise too.
Welcome to the Daily Journal Sunday Investment Chronicles: All the insight from the past week that you need to know, in one convenient place… Every Sunday we’ll highlight the most compelling insights from Porter & Co., and we’ll also share the most interesting and valuable research from elsewhere in the worlds of investing, finance, and economics that we come across each week.
In this issue of Saturday Stock Screen… we share the process of how we sift through thousands of stocks to find a handful that we will then do more in-depth analysis for possible inclusion in our Big Secret on Wall Street portfolio.
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.
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.