This was an article I wrote when I was in university 6 years ago for the investing club (I am getting old…). I have learnt a lot more since then, but the core ideas in the article still stayed true. Some of the examples are outdated:
- for BHP the mining boom has turned into a bust and is undergoing its mini-revival. The stock price of BHP has stayed flat (it is at $23.67 as of 10/3/17). You would have done better buying their South32 spinoff…at the right price of course (Forager Funds did a great write-up on it 2 years ago).
- Warren Buffett has bought IBM, airplane stocks and Apple (another testimony of how much of a learning machine he is!)
So without further ado… here it is!