Dillards x JC Penny
Today we will do a case study between 2 well-known American companies: Dillards and JC Penney.
As we always say, being a winner on the stock market is possible. But to win you need to invest with a lot of intelligence.
And investing with intelligence is knowing how to recognize efficient companies, buying these efficient companies when its stocks are cheap, staying with them for decades while they are efficient or enriching, and protecting your capital.
Dillards: It is a company that has achieved a good market share for its products. The company’s profits are strong on costs and expenses, Dillards is a machine of creating wealth and value for its investors.
J C Penny: It’s a company that still struggles for a share of the market to sell its products. JCP cannot outperform its competitors and therefore costs and expenses are higher than the price of its products. This destroys the creation of value for its shareholders, creating losses and destroying the company’s equity investment.
Which company would you have invested in the last 10 years: DDS or JCP?
If you said: DDS you won !!!!
If you said JCP: you destroyed your capital, your money. Take a look at the chart below:
If you do NOT know how to recognize an efficient company, you should not invest alone,
Stay with us.