In your 40s_ 3 stocks to consider buying _ motley fool australia dr power coupons
With retirement for most still at least two decades away, this offers a significant opportunity for workers in their salaried prime to buy a portfolio of “long-term compounders.”
This is the type of company which investors like Warren Buffett focus on buying. Www purchasingpower com They’re companies with good long-term growth prospects and the ability to reinvest their profits at an attractive return, allowing those reinvested profits to compound.
The health care sector is a prime growth sector for the economy and is set to benefit from a long term tailwind. Vip purchasing power Add in the defensive characteristic of the sector and there is plenty to like about health care companies.
Retaining and reinvesting profits has helped Ramsay to expand its earnings per share (EPS) from 55 cents per share
(cps) 10 years ago to 221 cps for the 12 months ending 30 June 2016. Purchasing power parity by country 2016 The total shareholder return (TSR) has been a corresponding 25.2% per annum (pa) over the past decade.
With a forward price-to-earnings ratio of 56 times Ramsay isn’t short term cheap. Purchasing manager resume cover letter However, with plenty of opportunities overseas, if you take a long term view there is potential for Ramsay to grow into its valuation.
While REA already has a dominant market-leading share of the real estate classifieds advertising market in Australia, its overseas operations have plenty of scope for future growth.
That capital allocation decision looks well founded considering the 30.8% pa TSR achieved over the past decade which has accompanied a rise in EPS from 12 cps 10 years ago to 168 cps in FY 2016.
The share price of telecommunications provider TPG has been severely sold down in recent months which could have opened up a window of opportunity for long-term investors.
TPG has undertaken an aggressive acquisition strategy in recent years to expand its market share. Www gov purchasingpower com This has been funded via a mixture of debt and equity which has consequently entailed a low dividend pay-out ratio.
With EPS growing from just 1.6 cps a decade ago to 38.3 cps in FY 2016 and a 10-year TSR of 31.4% pa, compounding the group’s retained earnings looks to have been the right move by the board and management.
While the outlook appears bright for each of the three companies mentioned above, it is important to remember that even if a sector has good prospects that doesn’t mean individual companies will automatically benefit.
One major risk is competition. Employee purchasing power For example, REA Group shareholders must remain alert to new entrants which in the future may displace REA’s current grip on the property advertising market. Purchasing power promo codes september 2016 (source: CommSec)
Few know, that as Warren Buffett blew out the candles on his 50th birthday cake, he had just 1% of his current fortune. Usa purchasing power Think about it: At an age when most give up hope, Buffett was just getting started on the remaining 99% of his fortune. Tyson purchasing power Goes to show you that it’s never too late for you to potentially get rich. Purchasing jobs Which is why we’ve gathered the strategies we learned from Buffett, distilled them down to 11 simple lessons, and put it in an exclusive report for you to claim. Power login Just click here to learn more about this handy investing guide.