April 2016 Dividend Income: Nil
I have not purchased any international stocks yet. The main reason is that I have been using any cash flow I have to buy two stocks in South Africa. One is what I consider to be very similar to Shake Shak in the USA, but at a far lower valuation as the Shak Shak part is still a small part of the business; the other is a retailer that I hope is similar to an early Walmart, but on the African continent. I believe that allocating capital to these two ideas will reap greater long term benefits, and dividends, than any current ideas I have with US or UK stocks. (Please see further on about my thoughts on a separate site to let you know more about such stocks, should there be sufficient interest.)
I am somewhat frustrated by not having made a purchase of an international stock yet as I am itching to buy, but feel that I cannot let these opportunities pass, while the valuations are reasonable, and the valuations on my shortlist for international stocks are fairly stretched. I have recently read Howard Marks excellent book “The most important thing”, and what he really drums home is that an excellent business is not always a good investment. He is referring to the fact that popular investments are often over priced. I have tried to remember these words, and will only allocate capital where I see the best investment case.
All the same, I must confess that I am very tempted to buy Starbucks, and intend to write an article about this company, while watching the price, which has become slightly cheaper recently on weaker results.
I have already written an article about one South African company which I have invested in, which has the rights to the Burger King franchise in SA. I think there was a fair amount of interest, and am thinking of a separate site which highlights stocks in South Africa, and the rest of Africa. Please let me know if you would have any interest in hearing about such stocks so that I can gauge the interest, as well as any other feedback you may have about this site.