Tuesday, November 29, 2011

There's an asnwer for each successful investment decision, but no right answer for relationship...

Relationship has no right/wrong answer for it, but when it come to investment, it gives the right/wrong answer for every decision.

We should have better control in investment compare to relationship. For those too focus on investment, please do care about your family members. Investment/ money is not everything, but you can't live without money.

Money can be part of your life, not all of your life.

1 comment:

  1. Why is it that everybody buys the very most popular stocks. If you do this you are doomed to get only average returns over time. Why not focus on decent companies that are extremely undervalued instead. I bought a stock called seaboard corporation About 7 or 8 maybe 9 years age something like that and paid 190 dollars a share. I sold my shares about 5 years later for 2500 hundred dollars. The company was profitable when I bought it and profitable when I sold my shares. Bear in mind I would not publish something that I cannot completly back up believe me. I will give an example of a company of really decent quality that I consider really undervalued. The company is Bunge Limited symbol {BG} engages in the agriculture and food businesses worldwide. The stock currently trades around 59 dollars a share. I think the stock could easily get to 450 dollars a share over the next five years. Yes you heard it right four hundred and fifty dollars a share. Assuming their are not stock splits. And what do I base this on If the companies profit margain expands from around 1.75% to 4% over the next five years and if the sales of the company expand from 55 billion to 85 billion thats growth of about 7 or 8 percent a year and if the companies stock than trades at a price earnings ratio of about 20. That would put the price of the stock at 450 dollars a share. It could even be more than 450 dollars a share if you reinvest your dividends the company pays a dividend also if the company does a share buyback this could increase the value of the stock even more. Keep in mind that their are stocks that are popular that trade at much higher price earnings ratios than 20 times earnings one example is whole foods market it currently trades at 35 times earnings. Also keep in mind that bunge is a company of really decent quality not at all a high risk stock. It has the potential to leave a company like proter and gamble in the dust. I understand your skepticsm if you are reading this it may sound to good to be true but go to any stock broker or financial planner CPA that knows how to value stocks and they will confirm everything that Im saying here.

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