Best perfoming stock newsletters8/13/2023 ![]() ![]() Amazon's success is evidence of how a disruptive company in a fast-growing market can deliver excellent returns for its shareholders. Like Altria and Coca-Cola, Amazon built a global brand with a strong reputation for low prices and excellent customer service. The tech giant has capitalized on being a pioneer in e-commerce, cloud computing, Kindle e-books, e-readers, and voice-activated technology with Alexa and Echo. ![]() The addictive nature of tobacco has made Altria so profitable that even despite dwindling smoking rates, the company has continued to grow by raising its prices. A dollar invested in Altria in 1968 would've turned into $6,638 by 2015 with dividends reinvested, this amounts to a mere 663,700% of total return, or 20.6% annually. This has been the best stock on the market over the past 50 years (if we include reinvested dividends). In the U.S alone, Marlboro sales are greater than those of the most prominent competitor brands combined. Marlboro is by far the most popular cigarette brand in the world: having sold 472 trillion cigarettes last year, compared with its main competitor, Lucky Strike (owned by British American Tobacco) who sold 107 trillion. The parent company of Marlboro, spun off from Philip Morris International (NYSE:PM), has had similar success to Coca-Cola. Coke's largest investor, Warren Buffett of Berkshire Hathaway, once said, "If you gave me $100 billion and said, "Take away the soft drink leadership of Coca-Cola", I'd give it back to you and say it couldn't be done." Despite this, the stock has struggled as fizzy drinks started to decline in popularity in the U.S, and elsewhere due to public health concerns. ![]() In addition, Coke's distribution chain enabled it to go global and boost smaller beverage brands after acquiring them. ![]() Coca-Cola used the same strategy to build other successful brands like Sprite and Fanta, along with the more recently acquired Vitamin Water. The brand in itself has become one of the most recognisable in the world, mainly as a result of smart advertising, as well as unique original formula. The Best Performing Stocks in HistoryĬoca-Cola has become one of the best-performing stocks of all time because the company has developed a number of competitive advantages. Should the FED signal hawkish tones or rate hikes, it would mean that investors can put their money into Bonds/Fixed Income for higher returns than before, causing investors to leave risky assets such as stock markets in response. One thing traders should pay attention to is the general positive correlation between all equities indices, but also the negative correlation between the Central Banks, e.g., European Central Bank or Federal Reserve Bank, and the DAX30 or the SP500. During a recession, the PE ratio can drop below 10. (Earnings is the amount that a company earns in one year.) Normally this ratio ranges around 12-18, and the higher it is the more overvalued the stock is in current earnings terms. For example, a company with the price/earnings ratio of 14 means it takes 14 years of earnings to repay the price. The price/earnings ratio points to how many years of earnings it actually takes to pay back the price. Blue-chip stocks represent companies that are financially stable, well-established and provide good returns, making them desirable investments. When evaluating the best performing stocks, we need to look at whether the company is a blue-chip stock and take into account its price/earnings ratio (PE). ![]()
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