Some 15 years ago on the old CNBC message boards, I recall that a poster asked anyone who wished to respond to state their best stock investing ideas that they actually owned, in both (1) large cap/well-followed/highly trades equities; and (2) smaller cap/ relatively unkown/ illiquid stocks. If memory serves, BRK was one of the ideas cited most, and it turned out to be a good time to have bought shares. I'll list mine: (1) AIG (AAPL is probably runner up). (2) DSWL. I've owned both of these for well over 1 year, and add to each of them regularly (also own AAPL, but only started buying when the stock traded below $450). Anyone else?
Beach, after quickly scanning chapter 22, "The Great Raid on Corporate Cash", of Stockman's 2013 book, "The Great Deformation", I can't think of a single individual stock that I would want to own. I am totally disgusted with corporate America.
I'd like to share the information that has upset me.
With any luck at all, you might be able to read the page (464) from the book online.
Google the following sentence, omitting the Guillemets:
« Upon closer examination, in fact, IBM was not the born-again growth machine trumpeted by the mob of Wall Street momo traders. »
The sentence that follows that reads: "It was actually a stock buyback contraption on steroids".
IBM was, by no means, the worse offender! The list (the number after the ticker symbol is the amount, in billions of dollars, that was spent between 2004-2011 on buybacks): XOM 160, MSFT 100, IBM 75, CSCO 50, HPQ 50, and PG 50.
In my opinion, rather than increasing their dividend, they choose instead to spend the money trying to hide stock option dilution and then attempted to put those options "in the money" by trying to goose the price.
FYI: If you run across the abbreviation, CEW, it stands for: Corporate Equity Withdrawal.
I've recently started an account for my 4 month old great niece gifting her 5 stocks that will never be sold- 1 share IBM and PM, 3 shares of LO and KO and 2 shares of AIG. All dividends we'll be reinvested until she turns 25 and then she'll gain control.
If you think that much higher inflation is in store for the next five to ten years, I think IBM (under $200) and KO (under $37) will do pretty well. Both have above average ROEs. I also think big banks (WFC, and USB) will do pretty well at today's prices. This assumes that 30-year mortgage rates get up over the historical inflation rate by a hundred basis points or so.