Investment: Stock markets are looking frothy, valuations stretched
Michael Murray: DCC, operating in 13 countries, looks a fairly safe harbour for long term investment.
Stock markets are looking frothy, valuations stretched. At some stage over the next 18 months, a market correction seems probable. Quantitative easing has fuelled global share prices. So, for equity investors at present a high level of selectivity and good homework is essential - on company management, market position, cost structure, cashflow resilience, diversity and financial firepower, and track record with acquisitions. It is on these criteria that DCC scores well. In my book, it is one of a handful of quoted companies headquartered in Ireland that still ticks all of the boxes for a sound, long term investment.
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