When other assets are not doing well, you can always turn to McDonalds (MCD).
The global fast-food company is positioned in all major cities. McDonald’s food quality and menu are famously standardised. Every Big Mac is the same in all stores; only prices differ (leading to the ‘The Big Mac Index’). In other words, McDonald’s assets and income are geographically diversified.
Just this week, its share price hit new all-time highs. The stock touched $336, fetching a market cap of $236 billion, the 64th largest in the world.
If you look at its long-term chart closely, you will quickly notice two things. One, the stability of its share price. Two, the firmness of its rally.
Those two elements combined to form a formidable long-term wealth generator.
While McD’s share price has only gone up “only” 10x in two decades ($33 to $335, 2006 to 2026), compared to many assets that have gone by the wayside during this time frame, McD’s performance is staggeringly good.
If you add in re-invested dividends, the total returns here are even higher.
Moreover, unlike many other companies, McD will hardly be affected by AI. The burger recipe is basically the same and will not change by the latest ChatGPT.
The lesson here is that ‘get rich slowly’ works. Find good long-term assets, build a position over time, and have lots of patience.
