Table Of Contents
Over the last three decades I have constantly advised that investors are far better off buying equity in the Big Four banks, rather than leaving money in savings accounts or term deposits.
All of the Big Four banks have done wonderfully well, growing their earnings, paying fully franked dividends, and making capital gains on their share prices.
In my article It’s all about Company Earnings (October 14, 2020) I provided an analysis of one of the Big Four banks. Between 2005 and 2015 the bank grew their earnings by an average of 8% pa, while a $100,000 investment grew to $175,525 over the 10-year period. But something changed with this bank five years ago – their earnings growth fell to just 1.1% pa and their share price followed. The $175,525 value of the bank’s shares five years ago is now worth just $100,358.
Between 2016 and 2020, the share price returns on the Big Four banks has been -4.0%, -18.7%,-25.2% and -42.3%. Over the same period the share market was up 24.5%. The Big Four banks are now ‘yesterday’s winners’ and they are unlikely to be the share market’s best performers over the next decade.
In my article Standout Companies in Australia (October 22, 2020) I identified standout Australia companies who are projected to grow their earnings by a combined average of 16.1% per annum. They are ‘tomorrow’s winners’.
The recent share market recovery has been good for most company’s share prices, so it is an ideal time to review company’s earnings growth with me, and enhance your future wealth by investing in tomorrow’s winners. Your initial meeting with me will be provided without cost or obligation.
Disclaimer: This information is general advice only, & has been prepared without taking into account the objectives, financial situation, or needs of any individual. It is not a specific recommendation to buy, sell or hold any product or security. Readers should seek financial advice before making a decision & should consider the appropriateness of this advice in light of their own objectives, financial situation, &needs.
Peter Lanham
