Tips for long-term investments 💡| An ETF that can be laid back and won?
More and more friends around me are buying $Invesco QQQ Trust (QQQ.US)$. A friend has always lamented that they should have bought it sooner, not counting dividends. The coupon price alone has gone up quite a bit, and they don't know what the heck it would be to buy a-shares. ![]()
What is the overall pattern of the US stock bull market over the past ten years? ![]()
People often ask me about my experience in investing in US stocks. I say that my personal experience is to lie back and win. He said your personal experience was a bit too personal. However, I think that as long as the method is correct, US stocks are not that difficult to make money. This is a common experience. There are too many good companies to look at, and the macro is also rampant. The boat has gone through thousands of mountains. What you have saved in US stocks for more than ten years is the experience of making money. What you want to pursue is the experience of learning to lose money; it seems that it's still a bit difficult.
People often ask me about my experience in investing in US stocks. I say that my personal experience is to lie back and win. He said your personal experience was a bit too personal. However, I think that as long as the method is correct, US stocks are not that difficult to make money. This is a common experience. There are too many good companies to look at, and the macro is also rampant. The boat has gone through thousands of mountains. What you have saved in US stocks for more than ten years is the experience of making money. What you want to pursue is the experience of learning to lose money; it seems that it's still a bit difficult.
I have summarized in 12 words — Technology pulls in, supports consumption, and moves forward together. US stocks are a bull market where technology-heavy stocks are at their peak, and the refinement of NASDAQ is the soul of technology. And behind technology — the anchor of valuation — is the backbone of consumer stocks. It has the meaning of a hero behind the scenes, making the entire market tend to be valued rationally.
Why are consumer stocks boosted? ![]()
Because US consumer companies mostly have excellent brand moats, they also face the entire global market.
Their products are competitive, and their cash flow is huge and fluctuating. Consumption itself is a kind of fulfillment of demand. The long-term bull market in US stocks is ultimately due to strong consumer stocks.
No matter what stock you have, in the end, all you have to satisfy is some kind of human need, that is, spiritual or material consumption.![]()
Many people will say that everything is a cyclical stock; it is nothing more than a cyclical strength or weakness; then everything is a consumer stock that makes perfect sense, because in the end, they all serve consumers.
Their products are competitive, and their cash flow is huge and fluctuating. Consumption itself is a kind of fulfillment of demand. The long-term bull market in US stocks is ultimately due to strong consumer stocks.
No matter what stock you have, in the end, all you have to satisfy is some kind of human need, that is, spiritual or material consumption.
Many people will say that everything is a cyclical stock; it is nothing more than a cyclical strength or weakness; then everything is a consumer stock that makes perfect sense, because in the end, they all serve consumers.
Stock god Old Buffett's heavy stock holdings over the years, using Coca Cola $Coca-Cola (KO.US)$ , Procter & Gamble $Procter & Gamble (PG.US)$ The consumer industry, represented by these, occupies an absolute leading position. Coca Cola has been Buffett Berkshire's largest stock for 15 consecutive years. Another example is Buffett's favorite stock of Apple $Apple (AAPL.US)$ Buffett invests as an optional consumer stock. And Apple's products also meet the general characteristics of consumer goods — terminality, branding, industrialization Standardized production, etc., the vast majority of Apple's revenue comes from end consumers.
The investment value of consumer stocks can also be seen from the company's financial performance. 📃✨
For example, for optional consumption, growth stocks with both technology and consumer attributes — Amazon and Tesla, although the latter fluctuate greatly, the overall performance has always been big bullish stocks. $Tesla (TSLA.US)$ $Amazon (AMZN.US)$
For example, for optional consumption, growth stocks with both technology and consumer attributes — Amazon and Tesla, although the latter fluctuate greatly, the overall performance has always been big bullish stocks. $Tesla (TSLA.US)$ $Amazon (AMZN.US)$
However, when it comes to daily consumption, most companies don't grow well (such as Coca Cola), but they have strong moats, a stable position in the industry, and enjoy a laid-back winning pattern of oligarchy or even monopoly. Their profitability is stable, and the ROIC is generally maintained at around 15%. What's more, shareholder returns, dividends, and repurchases of such companies are all very generous. Dividends and repurchases are a very important part of the total return of consumer goods companies. Like Walmart $Walmart (WMT.US)$ The distribution ratio is over 50%, Pepsi and Coca Cola have a distribution ratio of over 70%, and tobacco giant Philip Morris $Philip Morris International (PM.US)$ The distribution ratio, even over 80%, is comparable to REITs. Like McDonald's $McDonald's (MCD.US)$ In the past 10 years, although the compound growth rate of net profit was only 1%, the average annual compound return of its stocks reached 14%, and the annual yield provided through repurchases and dividends was about 5.9%, which is a real value interest-bearing stock.
The bosses want long-term returns and manageable risks, and consumer stocks are what they are fond of.![]()
The bosses want long-term returns and manageable risks, and consumer stocks are what they are fond of.
Among them, consumption, medicine, and technology all have heavy consumer attributes. These three sectors are worth investing in. For example:
🌟 Technology ETFs:
$Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL.US)$ $VanEck Semiconductor ETF (SMH.US)$
🌟 Consumer ETFs:
$Consumer Staples Select Sector SPDR Fund (XLP.US)$ $SPDR S&P Retail ETF (XRT.US)$
🌟 Pharmaceutical ETFs:
$The Health Care Select Sector SPDR® Fund (XLV.US)$ $iShares Biotechnology ETF (IBB.US)$
🌟 Technology ETFs:
$Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL.US)$ $VanEck Semiconductor ETF (SMH.US)$
🌟 Consumer ETFs:
$Consumer Staples Select Sector SPDR Fund (XLP.US)$ $SPDR S&P Retail ETF (XRT.US)$
🌟 Pharmaceutical ETFs:
$The Health Care Select Sector SPDR® Fund (XLV.US)$ $iShares Biotechnology ETF (IBB.US)$
In addition, industry ETFs can also be used with NASDAQ 100 ETF $Invesco QQQ Trust (QQQ.US)$ or S&P 500 ETF $SPDR S&P 500 ETF (SPY.US)$ Form an investment portfolio. Adding enough consumer stocks to one portfolio will have the best characteristics of consumer stocks — Cash flow and defensiveness.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Ishah : Well, due to the fact that a man who are married will increased their income by 4 + folds, I would say that the woman has a right to claim her husband's wealth. Even Jeff Bezos, he accredited his success to his exwife. A billionaire status is not a one man project. All the billionaires are or were married when the work was put in to make all their money. Do you know of any single men who have been single all their lives who have billions of dollars? I can't recall. Similar to a wife who is your mother, Elon Musk and Maye Musk, they operate as husband and wife... now that marriage brings the downfall of companies and legacies.