Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Social media addles the gullible

with 4 comments

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.

ocean_baloney

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 ?

overweight_kenya

 

Edit: Corrected 25 to 100 companies

Written by amitdipsite

December 29, 2016 at 10:29 am

Posted in Uncategorized

4 Responses

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  1. Hi Amit,

    How can we find all over the world’s stocks based on your criteria… Is there online free tool avalble to search this?

    Thanks,
    Vishal

    vishal

    December 30, 2016 at 9:26 am

    • Dear Vishal

      Some markets you can see on Google screener. 80% plus stocks in the world are listed in India, US, Canada, Australia, China, Germany, UK and Japan. Screeners in these eight countries independently can be run.

      Thanks

      amitdipsite

      December 30, 2016 at 9:54 am

  2. Hi Amit… Are you still in twitter?

    bijoy

    January 12, 2017 at 1:30 pm


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