Investing vs Trading

It is interesting to see such a list. This was discussed by warren buffet in his conference.

Few things:

  1. 14 out of 20 companies survived even after 20 years
  2. Three companies BAC, WMT, XOM are still above 200B list
  3. Infact AIG, BAC survived and multiplied after 2008 bottom
  4. Some companies MO, T, XOM, F, GM are dividend payers, nice returns so far, never know future.

Finally, see my statements - actually which I am planning - Anything deeply corrected, esp top 20 companies, will recover in future

Say, we find a recession bottom. At that time, we can pick up top 20 companies, and buy some LEAP calls (say 2 years). Only thing I need to analyze is that none is going to bankrupt stage in next 2 years.

Since these are top 20, they are the pullers of S&P or Nasdaq, move faster than both S&P & Nasdaq. Just see AAPL & MSFT vs S&P or QQQ, the leaders emerge faster than indexes.

This is what I am aiming as safer growth than holding 20 years.

Anyway, thanks again for thought provoking reply. Such productive discussion is rare from this blog!!

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