Motley Fool : Make Your Child a Millionaire

Product Information

It’s all part of CEO Tufan Erginbilgic’s plans to “ build a high-performing, competitive, resilient and growing Rolls-Royce.” I am a longtime Fool from the States relocated to London. With decades to go before retirement, I'm focused on AIM-listed small caps and growth shares of all stripes. My favourite companies are those that are looking to shake up stodgy industries with fresh ideas. After living and working in China for several years, I also have a soft spot for companies looking to take advantage of the long term potential to be found selling to a 100 million strong middle class. It might look good to be paying 8% and more. But I think the market can see through it. Just look at the size of those price falls. They’re the biggest of the bunch, over both 12 months and five years. Fears overdone I shake my head when I see a big business building a huge debt pile without really seeming to care too much. And when I see big-spending dividends at the same time, it makes me twitch. Right now, some Cash ISAs offer 4% on a fixed one-year term. So I can understand people taking a break from shares to stash cash there for a year. But I don’t want to do that.

My first loves were Maths and Physics. After studying Maths, Stats and Computer Science in the late 80s, I worked in the financial sector from 1987 to 2002. I then joined The Motley Fool's writing team in January 2003 and left in November 2005. Since then, I have been a freelance financial writer. My primary goal is to help people manage their money better by making sensible financial decisions! Despite the big gains in the Marks & Spencer share price of the past year, we still see forecast price-to-earnings ( P/E) ratios of only around 10 or so in the next few years. It’s a bit early to judge the dividend yield yet. Still, in an October trading update, CEO Miles Roberts spoke of a “ robust performance during the first half,” despite the economy this year. And he says the second half should be better than the first. Results soon All I’d need to do then is reinvest my dividends every year, and I could reach my goal in just 17 years. Down to earth FTSE 100 heading for 8,000 points? I don’t care if it’s eight points, or eight million points. All that matters to me is the valuation of my shares.

I already thought Lloyds shares were among the best value in the FTSE 100. But after these falls, the market puts them at only around half the average Footsie valuation. That just can’t be right. Scottish Mortgage Investment Trust shares have slumped in the past couple of years, and I think they’re still too cheap. Solid earnings forecast for the next couple of years would give us a P/E of 8.7, dropping to 8.3 by 2025. And there’s a dividend yield of more than 5%.

I really don’t see it staying at 10% for 20 years. But I think it shows the value of any cash we might invest now, while yields are so high. Uncerainty I've been a Fool for over a decade, and am proud to currently call myself the Editor in Chief of TMF UK. I follow Foolish investing principles, and buy shares in quality companies throughout both bull and bear markets! Foolish Freelancers Just look at all those billionaires who’ve made fortunes through timing their buys and sells just right. Oh, that’s right, I don’t know any. In recent times, there’s been a major push from Apple, which announced it was working on AI tools to challenge OpenAI’s services, including what some are calling its own ‘Apple GPT’. Tesla, for example, is on a price-to-earnings ( P/E) ratio of around 50. But a couple of years ago it was over 650.

Within the tech sector, there are a number of areas I’m excited about. One is cloud computing. Today, cloud technology is used by a wide range of organisations, from tiny start-ups to multinational enterprises. Yet, realistically, the cloud industry is still in its early stages. Some experts see the industry growing at nearly 20% per year between now and 2030.