Which brands do you buy? Which company has most of these brands?
What company will most likely still be around in 50 years?
Economic moat / durable competitive advantage
I discovered DRIPs in Canada, but I found out that more companies in the USA offer more DRIPs! So I applied what I learned in Canada here!
And the good news is that almost all of these DRIPs are available to non-citizens or foreigners!
My chance and dream to invest in US companies have come true!
I can effectively become a shareholder with one share, and by this one share, it will multiply and yield more shares! It is cost-effective, and small foreign investors serious in their investing could take advantage of this.
2 of my most favorite things in investing, has come together in this great invention:
1) compound interest - Customarily used in loans / bonds, compound interest is the most powerful force in the universe according to Albert Einstein.
2) equity - ownership in business corporations, yielding dividends and capital appreciation
They say stocks are hedged against inflation. If this is true, stocks, in the long run should be a better holding than money, which gets eroded in value due to inflation. Now, aside from being hedged from inflation, the percentages we get can actually be reinvested, like money, but better than money, to take advantage of compound interest! What a deal! So we save from commissions, taxes, and now inflation while taking advantage of compound interest!
I found a map of brands in the internet and found it very useful to decide which companies to invest in. As a foreign investor, I did recognize some of the brands but did not know which company they beloed to, so the "brand map" was a great overview and useful tool to select the company I'm interested in.
Our own PSE could use something like this.
The link to the brand map can be found here:
http://www.convergencealimentaire.info/map.jpg
Using this "brand map", the direct investing website, computershare and various transfer agent website, the various companies' corporate websites, plan brochures and prospectuses and the Bloomberg app to get quick historical price chart movement and fundamental values, I was able to come up with the following companies I am interested in investing in, as my FIRST foreign investment outside my country:
Unilever PLC
Reason: Dove, Vaseline, Selecta, Axe, Pond's (5)
DirectInvesting purchase: $108.862
TransferAgent Purchase: $250 + $15 (Computershare)
P/E 18.95
P/BV 6.4173
Div Yield 3.86%
5 yr div growth 8.54%
Reinvestment Fee: 10c per share
JP Morgan and Chase BUY
Reason: JP Morgan brand and investment bank, Chase bank, but poor customer reviews, bailed out, dividends per quarter, highest paid investment bank in 2013 in the world
DirectInvesting purchase: $123
Transfer Agent Purchase: $250 (Computershare)
P/E 9.07
P/BV 1.054
Div Yield 2.81%
5yr div growth 5.02%
Reinvestment Fee: none
Procter and Gamble BUY
Reason: Head and Shoulders, Tide, Downy, Gillette, Bounce, Crest, Oral-B, Pantene, Crest, Vicks (10)
DirectInvesting purchase: $148.033
Transfer Agent Purchase: $250 (Computershare)
P/E 19.62
P/BV 3.1769
Div Yield 3.22%
5yr div growth 8.34%
Reinvestment Fee: none
Pepsico
Reason: Quaker, Aunt Jemima, Pizza Hut, Taco Bell, KFC, Tropicana, Ocean Spray, Pepsi, Dole, Doritos (10)
DirectInvesting purchase: $156.767
Transfer Agent Purchase: $500 (Computershare)
P/E 19.86
P/BV 5.8743
Div Yield 2.98%
5yr div growth 6.45%
Reinvestment Fee: $0.03 first 100, more than 100 5% to $2 per share
CitiGroup BUY
Reason: one of the biggest banks in US, everybody uses Citibank, bailed out, price hasn't recovered 2009, virtually zero dividend, dividends per quarter
DirectInvesting purchase: $113.823
Transfer Agent Purchase: $ not available (Computershare)
P/E 9.87
P/BV 0.7386
Div Yield 0.08%
5 yr div growth -61.77%
Reinvestment Fee: none
Morgan Stanley
Reason: diversified investments across the globe, profitable as long as there is capitalism, bailed out, price hasn't recovered, dividends per quarter, MSCI divested from it :(
DirectInvesting purchase: $95.145
Transfer Agent Purchase: $ not available (Computershare)
P/E 14.91
P/BV 0.9866
Div Yield 1.25%
5yr div growth -22.19%
Reinvestment Fee: none
General Electric
Reason: bailed out
DirectInvesting purchase: $
Transfer Agent Purchase: $
P/E
P/BV
Div Yield
5 yr div growth
Reinvestment Fee:
Bank of America
Reason: turn around, very small dividends, bailed out
DirectInvesting purchase: $
Transfer Agent Purchase: $
P/E
P/BV
Div Yield
5 yr div growth
Reinvestment Fee:
General Mills
Reason: Haagen Dazs, Yoplait, Pillsbury
DirectInvesting purchase: $
Transfer Agent Purchase: $
P/E
P/BV
Div Yield
5yr div growth
Reinvestment Fee:
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