03-18-2014, 11:01 PM
Thanks for the replies guys! My thoughts...
REITs - Good points, in their current form, most REITs are levered to the teeth. Maybe future land/rent investments will tend to be more conservative(assuming the current debt bubble bursts)
MCD/PEP/KO - If a real trend in the foods we consume starts to hurt their bottom line, I see no reason these companies can't adjust. In fact, they already have(grilled, low fat, 0 cal, organic etc). But there has been a "health" trend in America over the last 20-30 years and cars are still wrapped around MCD everyday at lunch time. I don't see the health trend getting much stronger or being too serious of a threat going forward.
INTC - while "one trick ponies" tech companies like facebook/AOL/Worldcom could be gone tomorrow, I see INTC as a company that pumps out a commodity/provides a service that will always be consumed going forward. I don't think they are required to pick consumer trends as much as might believe. They simply supply the material to those who do.
BBL/BHP - no question commodities are cyclical. But since to me DGI is basically anti market timing, I am not too concerned. But the cyclical nature certainly means you need good management to smooth out the ups and down. This could be an issue.
What about BRK.b? Let seasoned value investors pick the companies for you! Could the inevitable new management put this company at greater than average risk? No dividend currently, but constant book value growth leading to compounded gains in a "tax free" vehicle.
Keep the thoughts and ideas coming. Thanks again guys.
REITs - Good points, in their current form, most REITs are levered to the teeth. Maybe future land/rent investments will tend to be more conservative(assuming the current debt bubble bursts)
MCD/PEP/KO - If a real trend in the foods we consume starts to hurt their bottom line, I see no reason these companies can't adjust. In fact, they already have(grilled, low fat, 0 cal, organic etc). But there has been a "health" trend in America over the last 20-30 years and cars are still wrapped around MCD everyday at lunch time. I don't see the health trend getting much stronger or being too serious of a threat going forward.
INTC - while "one trick ponies" tech companies like facebook/AOL/Worldcom could be gone tomorrow, I see INTC as a company that pumps out a commodity/provides a service that will always be consumed going forward. I don't think they are required to pick consumer trends as much as might believe. They simply supply the material to those who do.
BBL/BHP - no question commodities are cyclical. But since to me DGI is basically anti market timing, I am not too concerned. But the cyclical nature certainly means you need good management to smooth out the ups and down. This could be an issue.
What about BRK.b? Let seasoned value investors pick the companies for you! Could the inevitable new management put this company at greater than average risk? No dividend currently, but constant book value growth leading to compounded gains in a "tax free" vehicle.
Keep the thoughts and ideas coming. Thanks again guys.