McDonald's Corp (NYSE:MCD)

CAPS Rating: 3 out of 5

With its universally recognized Golden Arches, McDonald's franchises and operates fast-food restaurants around the globe.

Recs

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Player Avatar 20Punches (58.25) Submitted: 12/26/2012 1:55:51 PM : Outperform Start Price: $83.76 MCD Score: -24.87

“When Warren lectures at business schools, he says, “I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so you had twenty punches – representing all the investments that you get to make in a lifetime. And once you’ve punched through the card, you couldn’t make any more investments at all. Under those rules, you’d really think carefully about what you did, and you’d be forced to load up on what you’d really thought about. So you’d do much better.”" – Charlie Munger

In the spirit of this idea, I made 5 initial punches/picks, and will thereafter make a maximum of 1 pick per fiscal quarter until all 20 punches have been used. I expect to use up all punches over the next 5-7 years. I will compare the performance of this acct to my more "active" CAPs account, and see if this maxim proves correct.

Report this Post 9 Replies
Member Avatar trackjakeambrose (57.59) Submitted: 1/8/2013 1:14:24 AM
Recs: 0

mcd,nee,cni,csx,rai,mo,aapl,nsrgy,ge,ko

Member Avatar 20Punches (58.25) Submitted: 1/8/2013 11:21:00 PM
Recs: 0

Thanks for the reply!

We think along very similar lines. NSRGY and KO are wonderful companies. CNI is right up there with NSC and CSX too. I personally prefer PM to MO or RAI. GE i'm a little less into, and AAPL I think is at a disadvantage because they need to churn out flashy new products every other year, whereas the others we listed can retty much just keep doing what they've been doing over the past 50 years. AAPL has to be a different company in 2023, but KO, NSRGY, MO, RAI, NSC, CSX, CNI, and MCD really don't have to change much at all. I'd also like to nominate DIS, PEP, NKE, and UPS as wonderful companies.

NEE i've never looked at before. Will have to research that tomorrow.

Member Avatar trackjakeambrose (57.59) Submitted: 1/13/2013 5:47:52 AM
Recs: 0

when i thought about it more i may add WM , as for apple, thing is i am banking on them using their power well and if i was able to pick 9 id bank on lasting 30 years im fine with one that does not fit the same criteria. appl has many patents, hoards of cash to hire the new great minds, and an amazing hold on music industry, tablet, and my mac computer is by far the most impressive thing ive ever owned. just to share my thoughts. also, john deere may be an add as agriculture will always be huge and they provide the equipment to farm it and have heard that company is amazing by the customers.

Member Avatar JohnCLeven (76.20) Submitted: 1/14/2013 5:14:35 PM
Recs: 0

You say deere, I say Caterpillar. Both great companies.

WM is another one. It's almost like a utility company, without the government regulation.

Member Avatar trackjakeambrose (57.59) Submitted: 1/16/2013 9:24:46 AM
Recs: 0

cat can be more cyclical though i picked deere do to its agriculture ties. i mentioned wm in another post

Member Avatar kinosternon (99.35) Submitted: 1/16/2013 1:03:35 PM
Recs: 1

Wow! Twenty punches really makes you think. Thanks for starting this thread. NEE was never on my radar before I saw it mentioned here--I may have to start watching it.

Member Avatar MrOneHundred (30.32) Submitted: 1/23/2013 2:45:34 PM
Recs: 2

AAPL is definitely more risky than most stocks for the long haul, but I think I see where Jobs wished to take the company: to a similar futuristic look as you see in movies like men in black. I see AAPL trying to merge all information sharing units (Phones, Tablets, Computers, Televisions, etc) into different sized flat-thingies :) This move, while it may seem silly from a certain point of view, is selling very well! Even without Jobs around the company "may" still do well in 30 years. Thoughts?

Personally, I don't like the direction our national government is heading and would back away from agricultural stocks for that reason. Just my opinion, though.

DIS, I think, is also risky along similar lines with AAPL. The feeling Disney gives off on some of their shows has changed from way back when. This isn't necessarily a bad thing, but it does prove that DIS would probably be a different company 30 years from now. Potentially one that would start to do poorly. However, it has tons of money and power. It's hard to see it happening.

UPS is a very strong company and one that I could see staying strong in any economy.

What about GOOG? What do you guys think about that one personally?

Member Avatar 20Punches (58.25) Submitted: 1/28/2013 7:44:36 PM
Recs: 0

Personally, GOOG is outside my circle of competence, like just about all tech company. That aside, my "feeling" is that GOOG is a simpler, and safer longer term business then most other tech stocks. Google seems to have a significant moat in the search engine category. Heck, GOOGLE is a VERB! Hopefully, they are more of a "Band-Aid" then a "xXerox." LOL

Member Avatar Jarmbru (< 20) Submitted: 10/10/2013 7:02:18 PM
Recs: 0

"According to the lawsuit, the J.P. Morgan Chase payroll card carries fees for numerous transactions. They include a $1.50 minimum charge for an ATM withdrawal, $5 for an over-the-counter cash withdrawal, $1 to check the balance, 75 cents per online bill payment and $15 to replace a lost or stolen card."

http://www.huffingtonpost.com/2013/06/17/mcdonalds-pay-fees-debt-card_n_3454298.html

If this is true, and in the end it may not be true or it may be in part, the only honorable thing for any of us to do as investors is to either own MCD and raise hell with them for this nasty treatment of our employees, or simply not own the stock. Just owning the stock and not taking MCD management to task for this disgusting practice makes us personally into abusive owners.

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