Ryan, the oracle of Bishan

Was talking to Ryan in J8 today. I asked him which fast food chain would he want to own if he could own the whole company. He said McDonald's.

Next i asked if he can own any company in the world, which one will he own? He said Apple.

Then i asked if he has to own the company for the next 50 years, which one will he choose? He chose McDonald's as he's more certain that it will be around for the next half century.

Let's see how ryan would have done if he had bought these 2 stocks 4years ago.

Assume a equally weighted portfolio of 500 dollars each, over the last 4 years, the porfolio would have grown from $1,000 to $10,143 (excluding dividend). A staggering 78.5% return annualized!!!

$1,000 invested in the S&P 500 would have grown to 1360, a respectable 8% annualized.

So Ryan's portfolio would have beaten the index by over 10 times!!! Whoohoo!!!!

My numbers may not be very accurate, for i've simply pulled it off from google finance.
Click link to see the stock chart.

Of course investing is by NO MEANS as simple as buying Apple and McDonald's and get rich. But if you stick with investing in good companies that you know (i'm quite sure ryan will beat most Apple stock analyst in terms of product knowledge) and did not grossly overpay for the stock, the odds of you being a successful investor is rather high.

Loh Wei does NOT understand the economics of Apple, but i do think i know somethings about YUMS! (KFC, longjohnsilvers n pizza hut), McDonald's, Johnson and Johnson, Pepsico and/or Coke. And i'm confident that they'll be around for the next quater of a century. Most likely bigger and stronger.

Psst psst, next time if we need a stock idea, let's see what's Ryan spending his money on...