I often comment to others - when discussing stocks - that I consider myself to be Mister Joe Average guy. I wear stained blue jeans and t shirts with welding holes in them... While we enjoy a meal at some of the worlds finest places - I USED TO stop at McDonalds (MCD) once in awhile.
I sold my MCD holdings when I realized that "I" no longer stopped there - and that in fact - I began to AVOID them even if I was hungry. The food quality wasn't what it was - food was served slowly - served cold - and many times I couldn't understand one word the employee was saying. They also were dirty.
For Investing 102 basics... I often mention "fundamental changes"... and to own companies that you use personally. If you're an AT&T customer... you buy (T)... if you use Verizon (VZ) then buy that one instead. That way -- you can use yourself as a gauge for how things are going. If T pisses you off every time you interact with them -- and you switch services when your contract is up.... SELL! You're a good judge of what's going on with a company in general and if you don't like them - chances are - others feel the same way.
I sold MCD because I personally no longer liked the way they were doing business. I went from liking them to thinking they sucked. If I'm average Joe - then so be it - I figure others must see the same thing I do! I don't want to own things I'm not proud of! Period.
So here's a FUNDAMENTAL CHANGE in a business --- and thus my post today....
In 2013, McDonald’s reported a decline in U.S. same-store restaurant (those open at least 13 months) sales and a big drop off in customer traffic, breaking a 10-year streak of gains in a market that generates 30% of sales. And so far in 2014, things have only gotten worse, with McDonald’s diners staying away in droves.
Pay attention to these kinds of warnings. Yes - new management etc might turn a big ship around - but in the meantime - you as an investor might have lost out on the GROWTH of some other company that is kicking your butt... Don't stick your head in the sand and be a complacent investor! Retrain your "employees".... punch out and find a similar but better growth and income story. Be heads up -- it's important to how you're going to spend your retirement.
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