Common Stocks and Uncommon Profits

You have some money in your bank. You decided to invest some money in the common stocks. You have reached on blogthis decision as you want to have more income than if you would these funds in other way .History might be irrelevant to most of you but we compare the returns by looking at the past. It’s more fun and interesting to find some excellent companies in the market. Valuations may matter but that’s secondary to identifying the top-notch business. Here are some questions by Philip A. Fisher that will help in identifying the common stock with uncommon profits 🙂

  1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
  2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited? Continue reading “Common Stocks and Uncommon Profits”

European Banks & The Regulatory squeeze

 

This month McKinsey Quarterly published a standout paper on the regulatory squeeze of the European banks with the concluding remarks that the new rules will lower returns, but banks may be able to regain some lost ground.

The analysis was based on the 2010 financial-year data, assumes that the cumulative regulatory impact expected over the next several years will be realized immediately. The Basel III and new regional and national regulations will help reduce retail banking’s average return on equity (ROE) in Europe’s four largest markets to 6 percent, from about 10—a 41 percent decline.

Interesting to see that fall on ROE in four markets :- Continue reading “European Banks & The Regulatory squeeze”