Coffee Can

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‘Time is the friend of the wonderful company, the enemy of the mediocre.’ ~ Warren Buffett

How Does the Coffee Can Investment Strategy Work?

  1. Focus on high-quality companies: The coffee can investment strategy involves investing in high-quality, well-established companies with a consistent track record of growth and profitability. To be considered as a sound investment opportunity, the company should demonstrate that it has been in business for at least 10 years and sustainably generating returns of a minimum of 15% on its capital employed over this period.
  2. Look for market leaders: These companies are typically market leaders in their industry, with a competitive edge that allows them to maintain their market position over the long term.
  3. Invest in a small number of companies: Rather than trying to diversify across a large number of companies, the coffee can investment strategy involves investing in a small number of high-quality companies.
  4. Hold onto the companies for an extended period of time: Coffee can investors don’t worry about short-term gains and market volatility. Once you’ve selected your stocks, hold onto them for an extended period of time, typically 10 years or more – don’t let fear and greed get the better of you.
  5. By holding onto these companies for an extended period of time, investors can benefit from the power of compounding, as their returns are reinvested and grow over time.
  6. By investing in high-quality companies with a strong track record of growth and profitability, investors can benefit from the long-term growth potential of these companies.

Coffee Can Investing Strategy (Finding 100 Bagger)

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“I try to invest in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.”  ― Warren Buffett

Coffee Can Investment Strategy involves buying and holding a portfolio of high-quality companies for the long-term, typically ten years or more. The strategy is based on the premise that investing in the right high-quality companies will result in significant capital appreciation over time.

The concept was popularized in India by Saurabh Mukherjea in his book “ Coffee Can Investing:  The Low-Risk Route to Stupendous Wealth”.

In this strategy, investors pick a group of high-quality companies with a proven track record of generating consistent profits, revenue growth and return on invested capital (ROIC). The chosen equity stocks are held for an extended period irrespective of market conditions or short term volatility.

This strategy allows investors to avoid the temptation of selling their equity holdings during short-term market volatility. It protect the investor from their own bad decision and investing behavior.

You only need one of the Coffee Can companies to hit and become a 100 bagger.

But, how to look at a small cap company and know that they have a runway.

Look at the ownership and use your imagination to determine if a company can have organic growth and expand into other markets.

At the end of 10 years, you will have some stocks that have not grown, others that have lost value, and two to four outperformers. Those outperformers will provide a high return on investment.

It refers to companies that have generated a Return on Invested Capital (ROIC) of over 15% every year with the Coffee Can Investing approach. This makes the approach a low-risk route to making stupendous wealth.

Coffee Can Portfolio is mostly concerned with stock quality. As an investor, you must choose a quality stock, which signifies a fundamentally strong company. Here are some points to build a Coffee Can Portfolio.

  1. The company should have been in existence for at least 10 years.
  2. The revenue growth should be at least 10% year per year.
  3. ROIC of at least 15% for 10 years
  4. Market capitalization should be more than $500 million USD
  5. The company should have good brand value.
  6. The company should have a competitive edge.
  7. Founder or CEO has skin in the game focused on driving value in the business. Executive management is strong. 

For instance, let’s take an example of a toothpaste company. If a toothpaste company’s prices are increased, will people stop brushing? The answer is “NO.” Similarly, this strategy neither works on quantity nor growth; it works on quality investing.

References:

  1. https://groww.in/blog/the-coffee-can-portfolio

Six Triple Eight Central Postal Directory Battalion

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The Six Triple Eight Central Postal Directory Battalion was the only all African American Women’s Army Corps unit deployed overseas during World War II.

The President of the United States awarded the 6888th Postal Battalion the Congressional Gold Medal on March 14, 2022.

Small Cap Stocks

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Small-cap stocks are usually considered to be stocks with market capitalizations somewhere between $250 million and $2.5 billion.

Most companies start out as small-caps, but by continually growing their earnings and cash flow, their share prices appreciate. This can increase the market capitalization (share price times shares outstanding) of the company to large, or even mega-sized, while investors along for the ride reap the value appreciation.

Big names like Microsoft, Apple, and Amazon were all small-caps at one point.

Not all small-caps companies flourish like those giants have. Many fail or stop growing, which means losses or little profit for investors.

Great companies reveal themselves over the long term by continually producing quality earnings and sales growth.

According to Forbes, here are a few small-cap companies to research further are:

  • ACM Research produces cleaning equipment for the semiconductor industry. The company’s products remove impurities and particles from microchips. The company also offers other equipment that is used in various semiconductor processes.
  • Digi International is a technology company focusing on wireless communication and devices. It has more than 160 patents on products and 15 global offices.

References:

  1. https://www.forbes.com/advisor/investing/best-small-cap-stocks/

African American Experience During World War II

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African American Experience During World War II by Edward L. Brownlee:

Do you want to learn about the untold stories of African American heroes in World War II? Do you want to discover how they fought for freedom and justice on two fronts, at home and abroad? Do you want to explore how they faced racism, discrimination and segregation in a military that denied them equal opportunity and civil rights?

If you answered yes to any of these questions, then you need to read African American Experience During World War II by Edward L. Brownlee. This book provides a historical perspective of the 1.2 million African American service members who served in every branch of the U.S. military during the war. It reveals how they overcame challenges, contributed to the war effort, and changed the course of history.

This book is based on extensive research, interviews, and archival sources. It covers topics such as:

  • The roles and achievements of African American soldiers, sailors, airmen, and marines in various theaters of war
  • The struggles and successes of African American women in the military and civilian sectors
  • The impact of the war on the civil rights movement and the postwar social and political landscape
  • The legacy and recognition of African American veterans and their contributions to American society

African American Experience During World War II is a must-read for anyone interested in the history of World War II, African American history, or military history. It is a book that will inspire, educate, and challenge you to learn more about the brave men and women who fought for a better world.

Don’t miss this opportunity to get your copy of African American Experience During World War II by Edward L. Brownlee today. Click on the link below to order it from Amazon. You won’t regret it!

Order now

About Vitamin D | WebMD

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Experts aren’t sure if a lack of Vitamin D leads to depression or if it’s the other way around.

But studies show a link between the two. Research is ongoing to see if raising your vitamin D levels can help with symptoms and boost your mood.

Additionally, scientists are still figuring out exactly how well vitamin D can treat or even keep you from getting the influenza virus.

One study showed taking vitamin D drops in the winter helped lower the number of Japanese schoolchildren who got the flu. It’s clear it’s an important part of a healthy immune system. Your body can’t fight germs well if it doesn’t have enough.

And, healthy vitamin D levels can slow bone loss. It also helps ward off osteoporosis and lowers your chance of broken bones.

Doctors use vitamin D to treat osteomalacia. That’s a condition that causes soft bones, bone loss, and bone pain.

Vitamin D Deficiency

About 4 out of 10 Americans don’t get enough vitamin D. If yours is low, you might not eat enough foods with it. Or you might have a health condition that stops you from absorbing it. Or you might just need more sunlight.

Problems converting vitamin D from food or sunshine can set you up for a deficiency. Factors that increase your risk include:

  • Age 50 or older
  • Dark skin
  • A northern home
  • Overweight, obese, gastric bypass surgery
  • Milk allergy or lactose intolerance
  • Diseases that reduce nutrient absorption in the gut, such as Crohn’s disease or celiac
  • Being institutionalized
  • Taking certain medications such as seizure meds

Using sunscreen can interfere with getting vitamin D, but abandoning sunscreen can significantly increase your risk for skin cancer. So it’s worth looking for other sources of vitamin D in place of prolonged, unprotected exposure to the sun.

Make sure you take Vitamin K with Vitamin D

Vitamin K is an essential nutrient that helps your blood clot and your bones grow the way they should. It also may help prevent the bone disease osteoporosis and protect you against heart disease. You can get vitamin K from certain foods, and most diets in the United States contain enough of the daily recommended goal (90 micrograms for women and 120 micrograms for men).

References:

  1. https://www.webmd.com/vitamins-and-supplements/ss/slideshow-low-vitamin-d

Intermittent Fasting

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Is fasting the secret to a healthier and longer life?

👉 Is fasting the key to a longer and healthier life? For more information read this article about Professor Longo’s research and the benefits of fasting.

https://www.menshealth.com/uk/nutrition/a45545208/benefits-fasting/