Monday, 21 June 2010

Which type of Company would you rather own?

Would you prefer to own:

A.  One that consistently posts better earnings and whose stocks plows steadily higher?


B.  One that made the same amount of money for six years but was (a) profitable and (b) disciplined in paying hefty dividends back to investors?  (Note:  These companies are harder to find, but in such situations, a no- or low-growth company may actually be OK.)


C.  One that has made the same amount of money for six straight years, has little sense of enterprise, and has a stock that is trading at the same price it was ten years ago?


Be a stock picker: Buy GREAT companies and hold for the long term until their fundamentals change

Examples of companies in:
A - PetDag, PBB, LPI, PPB
B - Nestle, Guinness, DLady
C - Too many in this group in the KLSE.

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