Saturday, December 3, 2016

Growth after almost 5 years of investment

Dear all,

It was another hectic year to rebuild the business, and hard work has paid off.

Company1/2/20122/12/2016 Total Dividend Dividend %Percentage Gain/LossCompounded Gain/Loss
US-listed Companies
McDonald's $ 99.39  $ 118.24  $ 16.23 16.3%35.3%6.23%
Coca-Cola (2x) $ 69.70  $ 80.72 $ 11.13 16.0%31.8%5.67%
Starbucks (2x) $ 46.17  $ 114.42 $ 5.3711.6%160.1%21.0%
Walt Disney $ 38.85  $ 98.50 $ 4.84 12.5%166.0%21.6%
Las Vegas Sands $ 43.76  $ 60.99 $ 11.56 26.4%65.8%10.6%
Total Investment $ 297.87  $ 472.87  $ 49.1316.5%75.2%11.9%

Investment made in 2012 has compounded close to 12% per annum. That is, a $10,000 investment $17,545 after 5 years.

While the economy is showing signs of weakness in the coming couple of years, we should use this as an opportunity to find wonderful companies to invest into.

In my last post, I mentioned to keep a lookout at Burger King (merged with Tim Hortons) and Microsoft ($52.64 to $59.21). Microsoft will still have room for going upwards.

In Singapore, Seng Siong is a good investment but the P/E ratio of 30 is way too high to put your money into. We shall continue to monitor and look at the growth potential of Seng Siong. Meanwhile, it is worth the time to observe OCBC Bank and UOB Bank.

Cheers.