AN INCREDIBLE GAIN FROM A TOP “BASICS” IDEA
Today’s chart shows that you can make huge money in the basics…
Regular readers know that when it comes to investing in high-growth emerging markets – like Brazil, India, and China – we’re drawn to “the basics” approach of owning dominant global companies that sell things like soda, beer, and cigarettes to these markets.
Plus, well-run companies in these industries generate huge cash flows and big dividends.
We’ve mentioned Philip Morris International (PM) many times as a way to take advantage of this idea.
The stock is a favorite of our colleague Dan Ferris.
It’s one of the world’s dominant cigarette makers… And it has tremendous exposure to the world’s growing economies.
Readers who took our advice a few years ago have made more money here than we expected.
A steady gain of 10%-15% per year is a great result with a basics stock. But PM has produced a total return of 85% since this note two years ago.
It’s an incredible gain from owning the basics.
– Brian Hunt
Source: Market Notes