the "best" type of long term investment - is one where a company earns high rates of return on equity, and doesn't need to spend most of the earnings on replacement PPE (or reserves)........
one then needs to value these cashflows - and try and aquire at a discount to "value" ........value is driven by discount rate, and growth rate....
have a read of roger Montgomery's site / blog .......
the Australian market has very very very few of these types of companies !!!!!!!!!!!!!!!!!!!
having said that - STO is a play over future commodity prices.....
rgds
V_H
STO Price at posting:
$3.77 Sentiment: Hold Disclosure: Not Held
