McDonald's: How A High-Priced Speculative Growth Stock In 1965 Became A Thousand-Bagger Investment

It’s early 1965. You come across an aggressively growing company that sells a limited menu of burgers and fries from wacky-looking restaurants. The shares trade at over 25x their trailing earnings and have never paid a dividend. An analyst tells you he expects earnings to grow 90% in just two years.

Yet you’ve also just seen a straight 3-year bull market and people are starting to wonder whether the rally is getting tired. Do you buy?

That was the question facing McDonald’s (MCD) investors more than four decades ago, and those who answered yes, and then just held the stock for the long-term, earned a thousand times their investment according to Bigger Capital.

In fact, Bigger Capital says they know an analyst who made just such an investment, and they have an amazing 1965 investment report on McDonald’s as well.

Check it out here, it’s a mind-blowing read. Would you have bought it?

 

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Here’s a partial snapshot of MCD’s multi-generational ascent:

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Disclaimer: The author owns shares in McDonald’s (MCD). He or his associates could have exposure to McDonald’s securities at any time and without notice. This is not an investment recommendation and data may be subject to error despite best efforts. The author’s opinion could change at any time.

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