3 Stocks to Own For the Next Quarter-Century презентация

Having a Long Time Horizon Makes Investing Easier Can evaluate long-term success independent of business and economic cycles. Gives the business enough time to take full advantage of growth opportunities. Lets

Слайд 13 Stocks to Own For the Next Quarter-Century


Слайд 2Having a Long Time Horizon Makes Investing Easier
Can evaluate long-term success

independent of business and economic cycles.
Gives the business enough time to take full advantage of growth opportunities.
Lets you put short-term results into broader context.

There are many advantages to focusing on stocks you can hold for 25 years or more.

Source: Rick Hunter.


Слайд 3What Makes a Good Stock to Hold for 25 Years?
Well-established stocks

are reliable but have less growth potential.
New players in up-and-coming high-growth areas have huge potential but are riskier.
Consider personal need for capital appreciation vs. income.
Diversification makes it easier to take risks with individual picks.

If you want to hold a stock for 25 years, you should know where the company is and where it’s going.

Source: Wikimedia Commons.


Слайд 4Idea #1: Berkshire Hathaway (BRK-A)
Source: TMF.
This Warren Buffett-led conglomerate takes advantage

of the capital provided by its insurance operations to invest in a wide array of businesses in industries across the economy.

Слайд 5Does Berkshire Hathaway Belong in Your Portfolio?
Reasons to Own Berkshire:
Strong

track record of long-term returns (15% average annual return since 1990)
Strategic vision focuses on investing opportunities with long time horizons, aligning interests with shareholders
Buffett’s reputation gives Berkshire access to investments that competitors can’t get
Reasons Not to Own Berkshire:
Uncertainty about success of Buffett’s eventual successor
Stock doesn’t provide any income through dividends

Слайд 6Idea #2: MasterCard (MA)
Source: MasterCard.
The debit- and credit-card network provider isn’t

the biggest, but it has a strong presence in overseas markets and has attractive opportunities for worldwide growth.

Слайд 7Does MasterCard Belong in Your Portfolio?
Reasons to Own MasterCard:
Powerful early

stock returns (39% annually since 2006)
Emphasis on international markets gives it maximum growth potential compared to mature developed markets in U.S.
No. 2 position provides motivation to catch up to and surpass its primary rival.
Reasons Not to Own MasterCard:
Competition from other card networks and alternative electronic-payment methods could eat into its core business.
Dividend yield is just 0.7%, despite explosive recent growth.

Слайд 8Idea #3: PepsiCo (PEP)
Source: PepsiCo.
This beverage giant is best known for

its soft drinks, but it also has an impressive lineup of snack foods to help add diversification and growth opportunities.

Source: Jeepers Media under Creative Commons License..


Слайд 9Does PepsiCo Belong in Your Portfolio?
Reasons to Own PepsiCo:
3% dividend

yield with 43 straight annual increases.
Solid long-term returns (11% annual average since 1990).
Emphasis on building a strong reputation in emerging markets has created opportunities in high-growth areas.
Reasons Not to Own PepsiCo:
Concerns about core soft-drink business could hurt long-term beverage sales.
Strong competition from its beverage-giant arch-rival and from snack-food sellers that are trying to mimic its core strategy.

Слайд 10Create the Long-Term Portfolio You Need
Concentrate on high-quality businesses.
Look for market

leaders or up-and-coming upstarts with a true competitive advantage.
Set your sights high! Be patient to squeeze the most profit.

No company is assured success over a 25-year period, but you can put the odds in your favor.

Image: TMF.


Слайд 11The $60,000 Social Security Bonus You Don’t Want to Overlook
If you're

like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could ensure a boost in your retirement income of as much as $60,000. In fact, one MarketWatch reporter argues that if more Americans used them, the government would have to shell out an extra $10 billion… every year! And once you learn how to take advantage of these loopholes, you could retire confidently with the peace of mind we're all after.

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