Quote:
Originally Posted by GregWeld
It depends on WHY you've bought a particular stock. Did you buy GROWTH -- did you buy a DIVIDEND - did you buy SAFETY... or some combination of these.
McDonalds and Coke and IBM's are about buying a dividend with some sense of "surety" about your capital.
Big companies used to be known as "blue haired old lady stocks" because people could count on them. They're the tortoise stocks...
Once you get to a certain size in sales -- it's very difficult to GROW by large numbers. That's where MCD is... Same store sales are "okay but sub par" single digets. Growth has to come from overseas expansion... or menu changes etc. It's a difficult business but MCD is very good at it. I sold my position because I simply don't eat that way anymore and like to own things that I keep an eye on as a customer... The Peter Lynch version of investing.
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Does this correlate to how many shares are out there? Like you said about Microsoft and how it was hard for the price to increase because gates was selling so much of it every month.