Correct, they can't.
Only possible with small sums, they can't compound like Berkshire.
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As markets are going be tricky, consumer staples sector could be one safe heaven.
https://finance.yahoo.com/news/recession-proof-stocks-are-leading-the-markets-latest-leg-higher-135138102.html
"Since April 16, around when the S&P 500 (^GSPC) hit its recent bottom, Utilities (XLU) have led the charge, rising nearly 12%, accounting for all of the sector's gains year to date. Consumer Staples (XLP) stocks have risen almost 5% in that same period, while the S&P 500 is up about 2.7%."
Yes. My main concern is their debt level, but chart is looking good for the short run. I don't have companies with mountain of debt in my portfolio.
https://www.lse.co.uk/SharePrice.htm...CO&share=TESCO
https://www.theguardian.com/australi...-decision-rise
"With hopes for a rate cut gone, there is speculation of another rise before the end of 2024. What factors will sway the Reserve Bank’s decision?
Hopes for a near-term rate cut evaporated after the March CPI figures landed. According to Bloomberg, bets have switched to favouring a rate rise by the end of 2024.
Judo Bank’s chief economic adviser, Warren Hogan, says the RBA may need three rate rises – to 5.1% – to ensure that the inflation threat is extinguished."
There is a big difference between retail trader and professional trader. Professional trader is as smart as intelligent investor. IMO even intelligent investors need to do professional trading.
https://www.youtube.com/watch?v=L7G0OfJUON8
I hope all will agree that we are in the last part of rates going up cycle ...so now is not the time to shun companies with debt as they have reached their bottomish SPs ...only need confirm if they are viable still and will survive next few months or a year ...they maybe best buys now ...over geared but sound companies like RYM or OCA maybe ....main point being debt on balance sheets if survivable makes these companies multi baggers of the future
OCA is undergeared and has the lowest rates on a lot of its debt that any similar company has ever had in recorded history. Higher rates haven't effected them yet.
The combined 1.6 billion of liabilities is probably under 1% rate.
Nobody knows where we are at in the rate cycle, could be another 40 years to run, like the last cycle. Who knows.
I certainly am.
Attachment 15101
Ok so you don't think OCA would get any rent for their units. Nothing, nada. Seems realistic enough...
Optimistically at the moment I would be plugging in 4% in that $900M+ column.
Not sure I would even include that in this equation Winner. Up the Wahs!
I have backed total points, so like a true OCA Shareholder I just cheer everything!
Oh except no tries or goals kicked, that would be bummer.
Perhaps I'm not a real OCA kinda guy after all.