Thursday, March 26, 2020

What price to buy Macdonald and Proter and Gamble?

PG has a free cash flow of $12 B and cash of $13 B and long term debt of $38 B. The current price is $104 and market cap is $258 B. Only if the share price falls to 1/4 of the current price, that is $25, can it be a very good buy. Because the market cap will be $60 B and the free cash flow is 1/5 of the share price.

MCD has a market cap of $124B and a share price of $167. Free cash flow is only $5 B and the cash is $1B and it has a long term debt of $52B. Only if the market cap falls to $20B can it be a good buy. Wow, that will means its share price will drop to $30.

Wow, will this materialise? I do not know, but if it does not, the share price will likely see-saw for the next 10 years until it increased its cash flow.

US stocks are not a good place to put our money in. Where to put our funds?

Bonds. Interest rate are at a record low now. If there is a bank or big company default on its debt, interest rate will shoot right up and then bond prices will collapses, if I am not wrong.

Options and futures are too dangerous even for the professional investors.

Foreign currencies are also not safe.

If you have $1 Billion to invest, where will you put your funds into?

Fixed deposit?  I really has no idea. Maybe after my dream I know where to invest the funds.


1 comment:

  1. If Jim Rogers is in my position, where would he put $1 billion in?

    ReplyDelete