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Watch what do you do with your portfolio when the market starts to fall 200 points -- A lot of people went in -- consumer staples which have outperformed technology stocks when more than double -- investors searched for safe haven plays but.
Pap Dorsey my next guest says things are about to change in fact they should have already right -- and you -- run toward risk.
-- -- -- -- -- -- -- -- -- You're telling us this on a day where we see millions of people in Egypt that could turn out very badly who knows we've got a problem in Portugal with the government often up art.
And you say run toward risk.
Diego that -- baron Rothschild quote buy when there's blood in the streets.
Which sounds little tough but it's true.
You know there's been this big rush towards safety over the past two years -- -- whether it's corporate bonds -- -- treasuries.
Or whether it's consumer staples like a McCormack or Colgate.
But as a result you have wonderful businesses -- -- let's -- McCormick and -- trading at twenty and 21 times earnings.
And you know what there's not a lot more to America it's gonna be sold next year than this here.
These businesses aren't growing very quickly so I think -- a lot more opportunity and beaten down tech stocks like an oracle.
Or an apple or -- nontraditional income area right.
Alcohol but you throw out apple I know you've been a fan of apple infected picked -- last time it's gone down slightly since you picked it its way down off its 705 dollar pushed F five.
And how did you not believe an apple I am finally ready and you know I've been an apple -- out I'm finally ready to actually buy a MacBook Air because my Hewlett-Packard just isn't.
Working anymore I've tried I tried to be one of those people -- with a -- help them stay with Hewitt but.
Tell you why you're believe an apple we just tell the story yesterday where parents said it it was -- from its top spot of most respective companies.
Where is this company could go.
Yet I think what people are missing with apple is the loyalty of the current user base.
Now people are focused very much of the fact that first time Smartphone buyers.
Are typically not buying apple products are migrating much more toward the android ecosystem especially Samsung books and that is a very valid criticism.
But it ignores the fact that there about 350 million very loyal iPhone users.
Who so far show no signs of abandoning that IOS ecosystem.
And those folks they buy apps they -- iTunes there's a lot of value to those folks in the royalties they give to apple.
And I think the current share price you know plus cash.
Basically assumes that the current user base stays loyal and apple would never sell another iPhone.
To a new user again.
Which seems a little harsh to me.
Especially given that you've got 800 million users in China Mobile right now China Mobile has 800 million users.
That's a lot I think that's a big number -- -- and you know if you think about it if apple takes 10% of that.
That's eighty million users which increases their current user base -- over 20%.
You know pat I I -- -- of the bombing of it and call you because you are.
Very very expert in a lot of different kinds of stock investing in and the -- popular trade over the past two years was dividend -- People buying companies that where you could sit and make money while you waited for real recovery.
Is there still a name out there that you love that has a great dividend and you feel can also perform well it's a stock itself.
Yes -- Kinder Morgan would be the one I would point out that ticker is -- this is the parent company of a whole bunch of pipelines across United States.
Been run by Richard -- for the past decade.
Current yields about 4% and they're growing their dividend at about 10% per year and very interstate last week.
During the -- bloodbath and dividend stocks -- put up seventeen million bucks of his own money in the open market to buy shares at 36.
So I'd say that's a little bit of a vote of confidence.
I would say I would definitely say of what are you looking at -- it is not.
Not like and he owns 20% of the company's -- -- didn't have enough already well yeah there's a little bit of a toe in the water there I would think but -- hey that's a very nice dividend of 6%.
Just a quick mention on Qualcomm because I've seen Qualcomm bush just waiver a little bit from its real position of strength I know you're a believer -- it.
Are you picked it in the past lot of fans -- among our viewers to really like Qualcomm where does this one go from here.
Sure so that's -- an 8% free cash yield right now about fourteen times earnings their patent position is still very very strong.
And really -- detail when they have right now as -- as Smartphones become a larger proportion of the global handset things.
That selling price erosion that you typically -- consumer electronics is really mitigate -- that's helping their high margin worldly business tremendously.
So you know.
Ten years out you're probably going to have you know another wireless standard it's gonna be a rough going for Qualcomm but for the next few years I don't -- -- -- a very good position.
And very well -- -- both exactly and and and Qualcomm owns both the high end of the market and the lower and pat great to see you happy holiday.
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