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Yum Brands! (YUM): The stock for the next decade
Referring to his long-recommended position in YUM! Brands (NYSE: YUM), Louis Basenese exclaims, "I've spent 1,308 days tracking its price movements and written 11,239 words expounding its virtues." Indeed, the associate Investment Director for the Oxford Club states, "If I could only recommend one stock to own for the next decade, hands down YUM! Brands would be the one." insert.a.chart.YUM "YUM! Brands, operator of KFC, Pizza Hut and Taco Bell, is quietly transforming itself into an international juggernaut. "Today, roughly half of its operations and profits come from outside our borders. Tomorrow (okay, not that quickly, but soon), more than two thirds of its business will be based outside the United States. "And the transition and timing couldn't be more perfect. More than half the word's investable market capitalization is now outside the United States. And that percentage keeps growing. "Approximately 95% of the world population lives outside the United States. And roughly 71% of world gross domestic product is now generated outside the our borders. And that percentage is growing too. "In other words, it's hardly a time to have a 'home-country' bias if you're an American. The future of business and the best growth opportunities squarely reside in international markets, especially in China. And in the end, YUM! represents an easy way to embrace this reality. "With it, we get all the China growth we want, without all the China risk. We get all the international growth we want, without all the risk. And we get a history of doubling our money every three-and-a-half years. "Such growth and reliability is hard to come by. So grab it while you can... and I'll check back in 10 years to let you know how we've done. Every investor should own a few shares." by TheStockAdvisor (TheStockAdvisor.com) Disclaimer: Please note that charts and commentary provided by the moderator are for educational purposes only. Any trades placed upon reliance on the moderator’s charts or information is taken at your own risk for your own account. Past performance is no guarantee of future results. While there is great potential for reward trading stocks, futures and options, there is also substantial risk of loss and you must decide your own suitability to trade. Future trading results can never be guaranteed. This is not an offer to buy or sell stock, futures, options or commodity interests. Most trading systems are based on historical formulas which have worked in the past. However, what has happened before may or may not happen again. You can lose all your money trading stocks, futures, and options and you must decide your own suitability as to whether or not to trade. Only trade with true risk capital you can afford to lose. Only trade markets you can properly afford to trade. Properly funded trading accounts typically perform better than those that are not. Never risk more than 2-3% of your account on any one trade. Always define your risk before entering a trade and place a stop to limit your risk. There are no guarantees or certainties in trading. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during a system’s draw downs. If you are looking for a guarantee, trading is probably not for you. Most people lose money trading. One of the reasons is that they lack discipline and are unable to be consistent. A system can help you become consistent. Ironically, worrying about the monetary aspect of trading can contribute to and cause a trader to make trading errors. Therefore, it is important to only trade with true risk capital. |
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