Investing 102

[WSSix]

Originally Posted by Vince@MSperfab

why sell? why not just hold if the divi hasn't changed.

That's one of the reasons I've held on, too.

[GregWeld]

If I owned MCD I'd hold it. If the new CEO (Easterbrook) is as good as he's been for the stock - there's more good to come. I don't think I'd chase a stock - and certainly not for it's dividend... which as a percentage - goes lower as the price goes higher.

The CEO seems to recognize the company needs some updating and changes to the offerings. That's a good first step.

Don't bail on a stock the market just rewarded for going the right way.

[Vegas69]

McDonalds is suffering from a stigma they deserve. All good things come to an end, in their case, selling poor quality food at the cheapest price. The blinders have come off for many Americans that don't have their head in the sand. Hell, I didn't eat the crap before I really decided to get healthy.

I'd compare it to Cadillac and their old fart stigma. They can run all the commercials they want with young people, but I still can't see myself in a Cadillac.

They can recover and adapt, but it's going to take some serious time and marketing dollars to drown out the past and regain market share to places like Chipotle.

I'd rather invest in a company with a positive vibe and some momentum. No company is to big to fail. I recently read Good to Great. One of the elite companies that made the grade was Circuit City. They are gone... Look at block buster, etc... This is food so it's a bit different. I will say that McDonalds has 50 times the competition it had 25 years ago.

[Vince@Meanstreets]

Originally Posted by Vegas69

McDonalds is suffering from a stigma they deserve. All good things come to an end, in their case, selling poor quality food at the cheapest price. The blinders have come off for many Americans that don't have their head in the sand. Hell, I didn't eat the crap before I really decided to get healthy.

I'd compare it to Cadillac and their old fart stigma. They can run all the commercials they want with young people, but I still can't see myself in a Cadillac.

They can recover and adapt, but it's going to take some serious time and marketing dollars to drown out the past and regain market share to places like Chipotle.

I'd rather invest in a company with a positive vibe and some momentum. No company is to big to fail. I recently read Good to Great. One of the elite companies that made the grade was Circuit City. They are gone... Look at block buster, etc... This is food so it's a bit different. I will say that McDonalds has 50 times the competition it had 25 years ago.

Remember that MCD isn't a middle class and up staple. For a single parent or homeless person it maybe the only warm meal they eat in a week. In my opinion they are "too big to fail" and should be able to sustain itself if they can reinvent itself every few years. Long term I think its safe to stay. I don't own any stock or eat there....much. If I had owned it and have 100+ shares, i'd hold.

[glassman]

Originally Posted by Vegas69

I recently read Good to Great.

Like 90 people (bout four) have told me to read that book. Its on my "oh, sh_t, i forgot" list lol

[Vegas69]

Originally Posted by Vince@MSperfab

Remember that MCD isn't a middle class and up staple. For a single parent or homeless person it maybe the only warm meal they eat in a week. In my opinion they are "too big to fail" and should be able to sustain itself if they can reinvent itself every few years. Long term I think its safe to stay. I don't own any stock or eat there....much. If I had owned it and have 100+ shares, i'd hold.

I agree, I just don't think that demographic solely can support a flourishing business. They are franchises so the strong will likely survive with diminishing volume. I doubt they fail either, but nothing is out of play.

Originally Posted by glassman

Like 90 people (bout four) have told me to read that book. Its on my "oh, sh_t, i forgot" list lol

It was a decent read. It came down to the culture the great companies created. That was the factor from good to great. There, I saved you 250 pages.

[GregWeld]

Another CLASSIC example of "fundamental change" this morning!!

Microsoft (MSFT)

They (The Board of Directors) dumped Ballmer (the CEO since 2000) and installed Nadella.... and the shares and company are responding positively.

When you look at the MSFT chart -- you'll see great things happened until a sharp peak at the end of 1999.... and then a basic MOUNTAIN top shape downward from there. They announced Ballmer would be CEO in 1999 and he began his term in January 2000.... for the next several years the stock languished. The brains of the company (many are/were friends) bailed like rats leaving a sinking ship. So many big (HUGE) mistakes were made under Ballmer's term - the company spent BILLIONS on failed acquisitions and the linchpin product (Windows) lost market share to Apple (AAPL). Windows 8 was Ballmer's undoing.... OUT!

Enter Nadella... The market cheered... he immediately said they'd fix Windows 8.... and the stock takes off.... Now only a couple quarters and his (Nadella) hands are showing and the market loves it.

That is the essence of fundamental change.

[SSLance]

Anyone else considering adding to or starting a KMI position today?