Long Term Investing
The economic recovery from the Covid-19 crisis is turning out to be a classic “k-shape.” In a k-shaped recovery different parts of the economy recover at different rates or perhaps not at all. The question of investors is what are the long term effects of a k-shaped recovery on your investments? This year tech giants like Apple and Microsoft have done very well as the world pivoted to working and staying at home. Travel and hospitality businesses have done poorly and are not recovering anytime soon. What does this situation tell us about […]
The point of investing is to make money on your money. Judging the earning potential of an investment is basic to making this work. This is the case for both long term investors who buy and hold for years and for stock traders who attempt to time the market in search of short term profits. The earning potential of any investment depends on appreciation in value, realized earnings in the short term (dividends), and the value of the currency in which the investment is denominated. The last factor is affected by inflation and the volatility of the Forex market.
Automation has taken a toll on manufacturing in every corner of the globe. Light assembly jobs that took a hundred workers now require an automated assembly line working around the clock and now more than half a dozen workers. Investors are well aware of industries and economies hurt by automation. But, robotics has also created jobs and profitable companies. Are robotics good investments? Right now with the worldwide economy in the doldrums, this sector is lagging, but over the long term, robotics is, in fact, the wave of the future.
Investing in Robotics Stocks
As we enter 2020, long term investors are thinking of
investments for the next decade rather than just for the next year. In that
regard, we noticed an interesting snippet in Market Watch. They believe that some of the best investments for 2020 and beyond are offshore and in India
in particular. Their rationale includes the fact that two-thirds of their 1.2 billion
person population is 35-years-old or younger. The point is that anyone who
finds ways to sell to this growing pool of consumers will do well into the
distant future. This will be happening as the US-China trade war enters a more-permanent phase.
Disney is a name that everyone recognizes. Their theme parks are famous for the attractions as well as the long lines. Watching Snow White and Mickey Mouse cartoons has been part of childhood for generations. But, can Disney survive on the revenue from their theme parks and old movies? Aside from the famous name, why buy and hold Disney? The answer lies in one word, content! If you have not been paying attention, here is an update on the venerable and also forward-looking company.
Investing in Walt Disney Company
Walt Disney Company (DIS) has been a part […]
China and the USA have both hardened their positions to protect their national interests in the ongoing trade war. China is increasingly talking about not being humiliated as during the European Colonial Era and the USA is increasingly talking about China as a threat to US technological and economic leadership. What you need to consider is how to go about investing during a protracted trade war.
How Will the Trade War Affect Investments?
To the extent that you are invested in China, you may need to worry about the companies that will be sanctioned or cut […]
China has been the land of investment opportunity for decades with many investments in China doing very well. The benefits of investing in China came from its emergence as a developing economy, huge population and consumer base, and cheap workforce which attracted lots of foreign direct investment. Over the years China’s stock market matured, offering investment opportunities for average investors and many Chinese companies became listed in the USA as ADRs (American Depositary Receipts). Likewise, many mutual funds provided reasonably safe investment options by including Chinese stocks in their portfolios. There has always been risk associated with investments in China […]
This question came to mind when we read an article by The Motley Fool, 3 Growth Stocks to Buy and Hold for the Next 50 Years. First of all, we give you their thoughts on the subject and then ours.
In today’s world of high-speed trading and short attention spans, it might seem unfathomable to hold any given stock for years, let alone decades. But the world’s best investors know all too well the best way to consistently beat the market is to buy high-quality stocks and hold them for extended periods.
To that end, we asked three Motley Fool contributors to […]