The 11 best investment ideas for MoneyWeek's contributors share their favourite investment ideas forranging from Singaporean property to global equities.
But over the last five years, its fortunes have reversed. Revenue and profit how to make money and build a business in decline and the coffers are depleted.
InPZ Cussons sharply reduced capital expenditure and did not increase the dividend for the first time in many years. It kept the financial screws tightly turned in the year make money week 2020 May too. The company's problems are both self-inflicted and the result of external events.
It borrowed to buy brands that have been less profitable than expected. In developed markets such as the UK and Europe, brands face increased competition on two fronts: the internet, where consumers have much more choice; and discount retailers, who have developed their own copycat products. In Nigeria, until recently one of PZ Cussons' biggest markets, the economy has been rocked by low oil prices and internal conflict. The company is profitable but contracting and last week it dispensed with its longstanding CEO.
It has yet to appoint a replacement. That's the bad news. The good news is that PZ Cussons is committed to restoring its fortunes by selling off weaker brands and rationalising in Nigeria. It is ploughing the money from disposals and the savings from efficiencies into stronger brands, typicallypersonal care and beauty brands such as Imperial Leather soap and fake tan St. The plan is to improve the products, differentiating them from copycats and competitors, and sell them in more countries.
PZ Cussons' share price of p is half its historical high in In one sense that too is good news. The collective gloom may mean the shares are undervalued on an enterprise multiple of about 12 times adjusted profit. On the other hand, there is no telling when six years of negative share price momentum will reverse. This idea, then, is for patient long-term investors only. Great performers include America's Raytheon missilesGermany's Rheinmetall best tanks in the world and the UK's Chemring, QinetiQ and Cobham about to delist after a successful takeover bid.
Yet among these winners has been the mangiest of dogs. I intend to double up soon, not always the smartest advice for losers but in this case I am sure that "The Force" is with me. And the company? It builds or participates in almost everything from nuclear plants delta neutral strategies in options frigates, submarines, aviation and systems management.
Profits are evenly spread across its land, sea, air and nuclear operations. Debt is low and it trades at a smidgeon above its book value. There are actually four "Forces". Western governments have woken up to the often lamentable state of their armed forces so defence budgets are rising; the ever-nihilistic and opportunist Russian government is a clear threat and China's remorseless expansion of its armed forces is another; while the reliability of America as an ally is in doubt.
In takeover approaches were made by a private equity firm and the outsourcing group Serco. What's not to like? Stephen Connolly Think "technology" and the companies that spring most to mind are the likes of Facebook, Amazon and Google. Their success has attracted so many investors that they're what market commentators sometimes call "crowded trades". But while everyone is focused on the leaders, other stocks in a sector can be overlooked if not ignored altogether.
And this is where opportunities can lie. One area is "legacy" tech. These are the big names of yesteryear, unloved today because they have been dismissed, rightly or wrongly, as "ex-growth" think Intel, Cisco, Oracle and SAP, for example.
Make money week 2020 slowly declining as companies switch to the cloud and other new technologies and it hasn't kept up. But it's making up for lost ground to get back on a growth track. It's already adding profit to IBM's bottom line and it's hoped this will accelerate next year as it sells into IBM's considerable network of existing relationships in the US and internationally. Alongside rationalising operations and selling off non-core businesses, IBM is likely to appoint a new chief executive in Choosing Red Hat's Jim Whitehead, which would underline the group's make money week 2020 direction, would be well-received and help further revitalise investor interest.
From these levels it won't take much in the way of positive news to give the shares a significant boost as the year progresses. That theme is privacy. You might tell your lover something you wouldn't tell your lawyer, or your doctor something you wouldn't tell your mate.
Yet information about what we read, watch, say, buy or sell online gets used for purposes beyond the original one. As the saying goes: "When the internet is free, you are the product". That information is then used to shape behaviour and influence your decisions; to determine the content you receive what you do, see, read or watch; to sell things to you; and to make decisions about you the loan, the insurance or the job you are offered.
In the wrong hands, it could be used against you in some way, perhaps even to spy on you.
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Your data could be stolen. Only now are people starting to wake up and think about this. Regulators have taken steps, but technology is so advanced it has often moved on before any new rules are emerge.
We have little idea what is being used, how or by whom. We have little say in how it is used. We have no power to object, nor any ability to amend our data.
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We have very little control over it. The default setting of the internet is zero privacy. The solution is privacy technology.
Protecting our privacy limits the scope others have to use our information beyond the purpose for which it was supplied. It allows greater control over our online reputation. It enables us to explore new ideas outside the mainstream, without fear of being watched.
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Those that know about us have power over us. Protecting privacy limits that power. Cris Sholto Heaton The crisis in Hong Kong over the last nine months has caused long-term damage to the territory's reputation. Its status as Asia's financial capital is no longer so secure: companies will consider other locations for their regional headquarters and wealthy individuals will think about stashing their assets elsewhere.
Singapore has the most to gain from this: it's a major financial centre that offers the stability its larger rival conspicuously now lacks. Any medium-term shift out of Hong Kong will benefit the Singapore office market, where rents are already recovering from a glut of new supply in So this seems a good time to look at the local commercial-property real estate investment trusts Reits.
These offer a decent long-term income at a time when global interest rates are set to fall again another factor likely to help buoy their share prices over the next year.
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I still like TKH's mix of businesses, but half-year results were soft and guidance for full-year results was trimmed in November. Take profits.
Max King The UK small-cap trusts I recommended for struggled for most of the year but are enjoying a year-end rally. They should do well in but so should equities in general, leaving investors spoilt for choice. After minimal progress inearnings growth should accelerate inthough this is largely discounted in US valuations. It may be time for the rest of the make money week 2020 to catch up. After the persistent outperformance of growth over value, value investing has made a modest comeback in recent months.
Sir, I would like to join The Few.
Two global trusts fit the bill well. The former is the stable-mate of Scottish Mortgage at Baillie Gifford, the latter a former Baillie Gifford trust now managed by Artemis. This may enable it to be nimbler in the stockmarket should there be a need to rotate the portfolio.
The shares of both trade at premiums to net asset value you get what you pay for and both have low make money week 2020 yields. Neither will shoot the lights out but nor will they make money week 2020 you sleepless nights.
Given my record inyou may not need to jump in now. James McKeigue Think of some of the great investors' calls. Soros shorting the pound, perhaps, or the hedge funds that spotted flaws in subprime.
They all involve identifying a market anomaly something that looks unsustainable over the long-term and then betting against it continuing. At present there is a mile-long anomaly in the Andes make money week 2020 range Ecuadorian mining. As Francisco Pizarro and his fellow conquistadores could have told you almost years ago, the Andes is crammed full of gold, silver and copper.
That's why we've seen large mining industries develop in Chile, Peru, Bolivia and Colombia. But not in Ecuador.
That wasn't because of a lack of mineral resources. Despite the limited exploration more gold and copper has been found in Ecuador than anywhere else in the world over the last 15 years. Instead, a combination of social and economic factors an abundance of oil, poor infrastructure and political instability all played a part meant Ecuador never developed a large-scale, modern mining industry.
That anomaly clearly couldn't last forever. In recent years successive governments have improved conditions for international miners and in Ecuador's first-ever world-class mine began operation.
But this is just the beginning of the Ecuadorian mining boom. Twelve of the world's make money week 2020 mining companies have already set up offices in Ecuador and several more large projects will come onstream over the next few years.
Of course, there will be hiccups on the way.
Ecuador remains a politically volatile country, prone to protests. Yet, over the long run, mining is bound to grow in Ecuador. It has the mineral resources.
And as the country's politicians slowly get used to the extra tax dollars generated by mining, while increasing numbers of Ecuadorians find work in the labour-intensive industry, it will follow its Andean cousins in developing a serious mining industry. If Ecuadorian mining grows to even half that size it will create huge wealth for investors. Fortunately for us there are two companies that give us a direct way to get in early on the story.
I saw it as a potential recovery play amid panic over both Brexit and the annual "high street bloodbath" headline frenzy. I was wrong.
I can't claim that all of my tips do that well no, please don't write in to remind me of just how true that statement isbut I hope you acted on this one. If you did, then I don't expect it to repeat the feat this year but I'd hang on to it it's a retail survivor and a quality stock.
So what about this year? And in this age of activist investing, there's surely a price at which a professional troublemaker decides it's time to take a pop at the venerable brand. The other area where I think we'll see surprises next year is the oil sector. The oil price has been noticeably subdued this year, caught between the narrative of over-supply too much fracking and weak demand recession scares.