revenues up 23%, but costs are rising fast, the giant online retailer, has been trading at some really ridiculous price-to-earnings ratios – over 500 this year. The rating is due to the company’s rapid sales growth; investors believe that Amazon’s strong revenue growth will ultimately translate into high levels of profit, even though thus far the company has failed to deliver meaningful … Read more

McDonald’s profits fall as American tastes change

McDonald’s has had a rough few years. A host of problems have bedeviled the fast food chain, from sluggish US economic growth to rising food prices, and the company’s American sales have slumped. While McDonald’s has made an effort to expand beyond the US over the years – and indeed, the company does a roaring … Read more

Saving in cash will decimate your wealth: warning

Being overly conservative in your investment strategy is almost as deadly to your long-term wealth building efforts as taking wild risks. This is because inflation will outpace your returns, effectively eroding the purchasing power of your money. A survey by UBS suggests that younger investors are overwhelmingly opting for cash. This is largely because they … Read more