Why do people actually invest in shares like McDonald's? If I look at the history, the share doesn't even beat the MSCI World, let alone the S&P500. Now, after 10 years of investment, you have in all probability underperformed the MSCI World and can then pay significantly more tax on the profits thanks to the lack of partial exemption.
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@monkey_gambler Yes, that's what I think too. I'm sure you were right if there had been no splits in the past. Then today we would have a share price for Sage of, believe it or not
210.000$ 😜
Quote from Prof.DR Hartmut Walz
If you have invested directly in McDonald's in the last 10-20 years, there is a high probability that you will have beaten the MSCI World (after dividends have been taken into account). However, past performance is no guarantee for the future. For most investors, the MSCI World is the lower-risk, diversified choice, while McDonald's is a high-yielding single stock for income investors.
210.000$ 😜
Quote from Prof.DR Hartmut Walz
If you have invested directly in McDonald's in the last 10-20 years, there is a high probability that you will have beaten the MSCI World (after dividends have been taken into account). However, past performance is no guarantee for the future. For most investors, the MSCI World is the lower-risk, diversified choice, while McDonald's is a high-yielding single stock for income investors.
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•@KoenigsRasse The share (including dividends) has not beaten the world in the last 10 years.
Incidentally, I don't understand the "income investor" concept at all. After all, dividends are nothing more than an outflow of capital, and I can also pay them out of an accumulating ETF as and when I need them and am then not tied either in terms of time or amount.
People invest in supposedly not-so-great stocks just so that they get some kind of dividend in January.
Incidentally, I don't understand the "income investor" concept at all. After all, dividends are nothing more than an outflow of capital, and I can also pay them out of an accumulating ETF as and when I need them and am then not tied either in terms of time or amount.
People invest in supposedly not-so-great stocks just so that they get some kind of dividend in January.
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@monkey_gambler due to the stable business model, I would say. So similar to investing in $KO, $COST $ULVR and what they are all called. Not everyone has a 0815 etf portfolio and with these stocks you get relative security or diversification in your portfolio. Some individual stocks are not about beating the market but about cushioning drawdowns and if these defensive stocks then generate 3-5% pa and the overall portfolio stands at 18-22%, everything is fine
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