Yum Brands! (YUM): A stock pick for the next decade

Posted May 22nd 2008 10:10AM by Steven Halpern
Filed under: International Markets, China, Newsletters, Yum Brands (YUM), Stocks to Buy

Referring to his long-recommended position in YUM! Brands (NYSE: YUM), Louis Basenese exclaims, "I've spent 1,308 days tracking its price movements and written 11,239 words expounding its virtues."

Indeed, the associate Investment Director for The Oxford Club states, "If I could only recommend one stock to own for the next decade, hands down YUM! Brands would be the one."

"YUM! Brands, operator of KFC, Pizza Hut and Taco Bell, is quietly transforming itself into an international juggernaut. Today, roughly half of its operations and profits come from outside our borders. Tomorrow (okay, not that quickly, but soon), more than two thirds of its business will be based outside the United States.

"And the transition and timing couldn't be more perfect. More than half the word's investable market capitalization is now outside the United States. And that percentage keeps growing.

"Approximately 95% of the world population lives outside the United States. And roughly 71% of world gross domestic product is now generated outside the our borders. And that percentage is growing too.

"In other words, it's hardly a time to have a 'home-country' bias if you're an American. The future of business and the best growth opportunities squarely reside in international markets, especially in China. And in the end, YUM! represents an easy way to embrace this reality.

"With it, we get all the China growth we want, without all the China risk. We get all the international growth we want, without all the risk. And we get a history of doubling our money every three-and-a-half years.

"Such growth and reliability is hard to come by. So grab it while you can... and I'll check back in 10 years to let you know how we've done. Every investor should own a few shares."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

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