Social media addles the gullible
Let me write some flak and slam on good for nothing noise on the social media…
As per my estimate there are/were less than 100 listed companies globally that have
a) Done 22% CAGR on Sales and Profits in the immediate preceding 5 year period.
b) With ROE above 22% in each of those five years.
That is not to say that only 100 stocks out of ~60,000 did CAGR above 22% in the preceding five years. In fact, in Australia alone 240+ stocks delivered returns of 100% in the immediate 52 week period to the buy-and-hold type investors (90% dubious of course like any other continent) out of ~1,800 listed companies.
Yet here is a tweet that may get who knows a million re-tweets, says that there is an “Ocean” of companies with excellent characteristics, so don’t worry buy all of them and get rich 🙂
As per my assessment its a trickle, not an ocean. Management isn’t a sufficient condition for success, luck, right industry, right time, right characteristics of the business model need to conjoin to make an investment worthwhile. Try giving handicraft industry to Isaac Newton.
So, don’t drown for the magic potion of Ocean baloney and keep the money folded in your pocket.
Second, summed up as “What a man wants, that he also believes”. This
dude, organisation says that a certain XYZ Fund is “overweight” Kenya. While allocation to Thailand, Taiwan, Brazil, China, India is 8%, 13%, 9%, 16% and 15% or thereabouts and allocation to Kenya is 1.5%, do we have a different definition of the word “overweight” in Kenya ?
Edit: Corrected 25 to 100 companies