Filed under: Microsoft (MSFT), Wal-Mart (WMT), Exxon Mobil (XOM), Market Matters, Johnson and Johnson (JNJ), Procter and Gamble (PG), PetroChina Co Ltd ADR (PTR), Serious Money, Stocks to Buy, China Mobile Limited (CHL), Stock Picks
The twelve super caps are down to seven: Proctor & Gamble, Wal-Mart, Johnson & Johnson, China Mobile, PetroChina, Microsoft and ExxonMobil. Five are American companies and two are Chinese. The five U.S.-based enterprises have historically strong management teams and balance sheets. If this was the only criteria, I might take pause when considering the two Chinese companies only because I do not know enough about them to make a judgment, except that they have been very successful.
“My pal Warren” placed a large bet on PetroChina (PTR), which he has since sold off, but he always makes a big deal about management, so we will give these two the benefit of the doubt. The two also pay the highest yields among the group.
So where do we stand today? We’ll stick with all seven and here is why.
Continue reading Serious Money: Buying the Super Caps, Part 6 — Conclusions
Serious Money: Buying the Super Caps, Part 6 — Conclusions originally appeared on BloggingStocks on Tue, 25 May 2010 15:00:00 EST. Please see our terms for use of feeds.
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The market continues to be very volatile and trending down. When the seas are this turbulent you want to be on the biggest ships and thus I continue my review of the super cap stocks. This time, I’m going to examine return-on-equity (ROE) and return on-invested-capital (ROIC).
It’s a cliché but it rings so true: just show me the money! In the case of stocks that’s profits and distributions, or dividends.
Over the years I have referred to “my pal Warren” (Warren Buffet) on many occasions. He has taught me a great deal. I have learned a few things from Sir John Templeton (RIP) as well. But when I think about the price-to-earnings-to-growth (PEG) ratios, it is Peter Lynch who stands tall.
