When it comes to investing for the long term …
… few can match the time horizon of my co-founder, David Kuo.
You see, David does NOT look for stocks that will pay him dividends for life.
He seeks stocks that can pay him AND his children for life.
In other words, he’s looking for stocks that can last beyond his life …
… and into the NEXT generation.
When you think in terms of decades, you will find yourself thinking differently when it comes to stocks.
It’s NOT about interest rates or what the US Federal Reserve will do next month.
It’s NOT about inflation or how high oil prices are going to go this week, this month or this year.
It’s NOT even about inverted yield curves or the threat of recessions.
It’s about surviving ALL of the above and much more.
Stocks for the next generation
The crux behind David’s way of investing is about LONGEVITY.
Think about it for a moment …
What are the kinds of assets that will still be standing strong decades from now?
What are the businesses that will still be around when the time comes to hand our stocks over to our loved ones?
This unusual way of thinking is why David loves real estate investment trusts (REITs).
Take Plaza Singapura, a modern mall owned by CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT.
You may be surprised to learn that this shopping destination near Dhoby Ghaut MRT is approaching 50 years old.
You may be EVEN more surprised to learn that Plaza Singapura is several years younger than both Far East Plaza and Lucky Plaza.
The ability of CICT to rejuvenate a property such as Plaza Singapura into a destination that still attracts thousands of shoppers every year is a testament to the management’s capability.
A well-maintained property can be rented out at healthy rates.
And that translates into a continuous stream of dividends for unitholders, including David.
At Kuo’s Income Portfolio, my co-founder focuses on property-related stocks that can stand the test of time.
Next generation consumers
You won’t catch David telling you which cryptocurrency will be the next big thing.
My co-founder prefers the simple pleasures in life — food.
Consider Nestle Malaysia (KLSE: 4707), the Swiss-based food and beverage (F&B) manufacturer that set root in Malaysia over 100 years ago.
With household brand names such as MILO, KitKat, Maggi, and Nescafe, it’s no wonder that its products continue to be a daily staple in Asia and beyond.
What’s more, Nestle is home to 500 Halal-certified products made out of Malaysia.
Our northern neighbour is the world leader in the halal industry, gaining prominence by establishing a globally-recognised halal certification.
Malaysia’s trusted status in the Islamic world enables Nestle Malaysia to ship to over 50 countries, serving consumers near and far.
That’s why David owns stocks such as Nestle Malaysia in his Malaysia Money Machine portfolio.
With Malaysia’s population (read: consumers) six times larger than ours, you have a recipe for sustainable dividends.
Speaking of consumers, you may have noticed a McDonald’s (NYSE: MCD) outlet during your daily commute or around the corner from where you live.
It’s not a coincidence.
The Golden Arches has come a long way since opening its first-ever store at Liat Tower in 1979.
With over 10,000 stores located in Asia, McDonald’s has become synonymous with fast food in Asia.
Founded two years before Singapore’s independence, the restaurant chain is another example of a long-lasting business that would likely still be serving burgers a decade from today.
Interestingly, McDonald’s has been increasing its dividend for over 45 years, an enviable track record that caught David’s eye.
Today, the stock sits in his Asian Consumer Portfolio.
According to Statista and the World Economic Forum, the Asian Middle class is expected to reach 3.5 billion by 2030, up from 2.2 billion in 2020.
The addition of over a billion new consumers bodes well for the longevity of his portfolio.
To your good healthcare
In the future, we may consult a doctor through telehealth.
Our medicine may be delivered to our homes instead of us needing to collect it at the pharmacy.
Either way, our good health is a key priority.
With over 900 million Asians expected to be 65 or older by 2050, good healthcare continues to be a key priority of governments in the region.
That’s a big reason why we started a new Asian Health and Wellness Portfolio.
With five stocks selected so far, we are in the early stages of building our next generation portfolio with a keen eye for the future.
Get Smart: Stocks for all seasons
As Chance the Gardener once said:
“In the garden, growth has its seasons.
First comes spring and summer, but then we have fall and winter.
And then we get spring and summer again.
As long as the roots are not severed, all is well.
And all will be well in the garden.”
The same applies to investing.
There will come a time when recession drags down the businesses we own.
There will be a time when the stocks we own underperform.
But so long as the roots of the business, be it a well-regarded property or a daily staple, remain relevant — all will be well.
The best part about thinking like David is that it is well within everyone’s reach.
So, given the choice, what stocks would you prefer to own?
If you’re nervous, confused, or worried about buying your first stock, then our latest beginner’s guide to investing can help. It’s easy to read yet packed with valuable insights. Download it for free today, and buy your first stock in the next few hours. Click here to get started.
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Disclaimer: Chin Hui Leong owns shares of CapitaLand Integrated Commercial Trust.
