Trade disputes are real but just another bump on the road to wealth

Lately we have been witnessing trade disputes between the US & China not to mention the tension between the US & ( Canada + the European Union). Tariffs are tools from the past to get a concession from a trade partner. If we take the US & China the recent trade goes around – 350 billions for the US. ( China imports around 150 billions of goods from the US & The US imports around 500 billions). Trump’s desire is to “level the playing field to diminish the negative yearly balance on the trade. Will those tariffs have a meaningful impact in the future? : I don’t think so.

tarrifs

  1. Presidents come and go, the next one might have a completely different vision on this matter.
  2. You can not artificially bent a natural competitive advantage a country might have on producing a product or providing a service.
  3. Even if those tariffs apply for a few years the consumer will  not sense it that much because the effect is diluted on thousands of products that most are not essential to your every day living.

 

SO PLEASE DO NOT FREEK OUT AND LET THE MEDIA SCARE YOU OFF

Why settle for 5% if you can achieve over 20% per year.

As you can see below my track record in terms of total return is by most standards impressive. The most important think to do, is to read successful people`s  strategy and read financial statements to make sense of it. In my case I took the following people as mentors: Warren buffet, Jim Cramer, Peter Lynch. So many others are available don’t shy away from their wisdom. Read them and see how they became successful.

Last 2 lines are the SP 500 Return in CDN$ & US$

5 year total return

Believe in yourself

 

How to invest like a Pro

With all the information available via the internet it is sometimes hard to summarize what are the most important metrics to take an investment decision. Since I started to build my investment portfolio I can confirm the following metrics have been the pillars of my market beating total return along the years.

 

Let’s take a good student 10Q Quartely report : Apple computers inc

1st important metric is net income in Billions$/ you can see that the growth from 2017to 2018 is heading the right way. In any given business if the last 10 years is an uptrend that is a good sign.

data

net income

2nd is the EPS ( earnings per share) , in apple’s case their buyback program is so big that it has a benefit effect on the shareholder return for the future. The trend you want to see as per below is the shrinking numbers of shares in this case from 5,274,394 to 4,926,609 and by consequence the earning per share going up.

EPS

Because the share count is shrinking it gives more room for the company to grow the dividend per share faster as shown below, there is no doubt in my mind that this company can grow the dividend per share by at least 10 to 15% per year for the next 10 years at least.

dividends

last one that in my mind is crucial is the available cash & assets available to the company. Why? Because this gives options for the company to invest in Research and development to grow the business, acquire another company to grow its presence in another area, buyback more of its own shares to increase shareholder value among other corporate decisions.

as you can see below numbers again are impressive : no one has 253 billions $ of available cash assets to grow their business but Apple computers

 

cash

 

there you have it. By applying this method for each of my holdings I have been able to get an impressive total return on my investments.

 

be well & get wealthy

 

T

Initiated a position in CME group

It is becoming hard to find a good company at a fair price at this stage of the bull market. I have been fortunate enough to discover such an opportunity in CME group.

https://www.cmegroup.com/

Just like Visa or MasterCard, CME is using their platform to offer a service and collect a fee on the volume of transactions done on it. So there is no credit risk for them. I really love this type of business because it offers a good long term opportunity to accumulate capital gains. This is also a dividend play, on top of which it gives a yearly one time dividend sort of a bonus depending on how well the platform performs.

If you are looking for a fairly valued platform I strongly suggest you visit the website above

 

CME Group

 

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