Monday 23 September 2019

Bigger Businesses Have Better Capabilities To Strive For Survival

temperament 22 September 2019 at 19:54:00 GMT+8

 Yes, which of the companies will survive?

 Real solid businesses which people will need no matter what will happens with the economy or market?

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 Read? Fundamental Analysis : As Outsiders How Far Into The Future Can We Analyze Company Business?
Coming to two years soon!.

 What he observed how bigger F&B businesses can have better resources or/and capability to strive for survival across cycle of boom and doom and tough F&B competition and changing consumer taste buds.

 From 16 down to 12 and then slowly recovered at 1 outlet at a time to current 15 outlets.

 1. Four outlets had closed shop and vacated.

 2. Two outlets have re-branded themselves; but after a few months also closed shop and vacated.

 3. One has re-branded and still surviving

 4. Five new brand outlets started.
Hmm ... bigger is better?

 Invest in small cap, mid cap or large cap or blue chips?

 You decide!




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7 comments:

  1. Spur23 September 2019 at 14:55:00 GMT+8

    Hi Uncle8888,

    Hoho, if investing in individual blue chips, need to assess quality of revenue & cashflows too.

    Otherwise wait happy happy hold onto things like SPH, Singpost, Starhub :)

    Unless it's blue chip ETF like STI then can bochap --- auto self-renewal.

    Many "blue chips" currently many times bigger than Keppel (S$11B mkt cap) are prime candidates to go bankrupt in the next big recession:

    Uber --- S$76B (bigger than DBS!)
    Snapchat --- S$32B
    Lyft --- S$18B
    Tesla --- S$59B
    Wework --- S$14B (much reduced from S$65B !!)
    Grab --- S$19B (private equity & Temasek darling)
    Gojek --- S$13B (private equity & Temasek darling)
    AirBnB --- S$43B (although it has self-declared unaudited razor-thin 3.5% profit margin in 2018)

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  2. Createwealth888823 September 2019 at 22:23:00 GMT+8

    One day, company will be run by idiots and goes bust

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  3. Rainbow23 September 2019 at 23:23:00 GMT+8

    That's why must diversify, cannot bet all on a few blue chips. Blue chips can also turn into blue black chips.

    Keppel is a blue black chip for me.
    (Different gems for different times. And we don't have the crystal ball.)

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  4. CreateWealth888825 September 2019 at 11:15:00 GMT+8

    Malaysia Public Bank may have made many early retail investors millionaires. Anyone personally know someone in Malaysia still holding on to Public Bank shares?

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