Large-cap stocks to buy: Large business opportunity plus efficient management is the key: 5 large-caps from different sectors with an upside potential of up to 38%
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Synopsis What is the net profit margin of the company that is one of the biggest wealth creators of the last 20 years? Just 6.6%. And it’s not just in one year. In the last five years, the net profit margin has not moved into double-digits. At the same time, sales have been increasing year-on-year and profit on an absolute basis has been growing. And, of course, the stock is doing extremely well. The point here is: It is the overall size of a business that matters. And if the management is efficient, even a low-margin business can create a multibagger. We look at 5 stocks where the overall business opportunity is big and net margins are in single-digits – but the managements have a track record of executing well. As the market experiences volatility – with more expected in the coming days – remember that this is a transient phase. What endures are investing principles. So, develop the ability to ignore the noise which volatility creates a...