Our Fund owns shares in ITV and they produce reality TV & game shows
Which are good businesses
Think about it
The Cost of producing Love Island is basically:
· £50k of prize money for their buff contestants,
· the rental cost of a Majorcan villa,
· a couple of cameras &
· a fully stocked bar fridge – if they order before 10 Downing Street
And for, “I’m (wanna be) a Celebrity get me outta here”, in its 21st series,
· The bugs, snakes & dangly kangaroo bits they feed the contestants, are free in every Aussie jungle
· and they don’t have to pay any prize money (true)
Yes, Visa costs might rise next season..,
but surely that’s a better business than
buying an “iconic brand” football club where you pay some prima donnas £200k A WEEK to sit in a hair salon Monday to Friday and then on the bench at the weekend?
Back to my game
It’s called, What makes financial sense NOW?
And it works like this
I tell you 2 stock stories & you get to choose which you want to own NOW
Cue spinning pie chart, flashing lights & a jingle
Since Funds are a conglomeration of companies & people like to choose them using performance history,
we provide you with the 1, 3, & 5 years performance numbers to help you decide
First up it’s JPM, the World’s largest bank valued at $465bn
Some call this a “quality bank”
perhaps referring to the “quality” $31m salary they paid their CEO last year
The largest bank in all Global / US Value ETFs I could find
So if you own one of these,
JPM is sure to be a top 5 position for you
In USD with dividends reinvested, the
1, 3 & 5 year numbers are +28%, +21%, +16%
Next up, Dutch Giant, ABN AMRO Bank N.V.
Where the CEO must wish he played football because last year he “only” earned €700k
Not greedy – tick
1, 3 & 5 year numbers are +68% -10%, -5%
That’s right contestants, a few minuses in there
Thanks regulator!
Meaning $100 invested 5 yrs ago at 31.12.21 was worth
$210 for JPM
$ 78 for ABN
What’s it going to be?
cut to ads
We’re back, but before you decide, know this:
JPM’s CET1 Capital Ratio is 13%
In the results announced last week
EPS fell 13% in Q4
despite 3.5% fewer shares
The price fell 6%
Analysts think it’s on 13 x fwd earnings
No commitment on buybacks next yr
which makes sense – JPM trades at 2.2 x Tangible BV
ABN Amro
ABN’s CET1 capital ratio is 18%
The Dutch economy is strong
Analysts think it’s on 12 x fwd earnings
Before a potential €1bn buyback being discussed with the regulator, = ~7% shares in issue
ABN trades at 0.7x Tangible BV
so 1/3 the price & better capitalised..
and buybacks will add value
What makes financial sense?
The best historic performer
or
the best NOW?
If ABN wins, you may need to go active because
it’s only 0.04% in the MSCI World Value index
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