Wednesday, January 12, 2011

Good International Stocks

I went top an adviser briefing in Feb 2010 see http://www.arktotalwealth.com.au/gvi-market.aspx

He recommended the following international stocks... he was on the money with Nestle and Colgate!!

Nestle - View the full NSRGY http://www.wikinvest.com/wiki/NestleSince Feb 2010 share price has gone from $35 - $55 (57% increase)

Colgate – good branding – endorsed by dentists, 75% revenue in emerging markets http://www.wikinvest.com/stock/Colgate-palmolive_(KAR:COLG) Since Feb 2010 share price has gone from $42 - $92 (120% increase)

Telefonica (Spain), http://www.wikinvest.com/stock/Telefonica_SA_TEF) Since Feb 2010 share price has gone from $70 - $65 (7% decrease)

Exxon, Shell http://www.wikinvest.com/stock/Exxon_Mobil_(XOM) Since Feb 2010 share price has gone from $67 - $74 (10% increase)

What to look for in a Company

• Look to buy good quality businesses cheaply
• Either 1,2 or 3 in a space and is difficult to displace
• Transparent
• Good Point of Difference
• Regular and Increasing Dividends to Shareholders – generally outperform companies with low dividend yields re growth.
• Strong and Lazy Balance Sheets are good!!
• Grow earnings and Dividends over time
• Good Margins
• EBIT has consistent growth
• Strong Brand

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