The twelve super caps are down to seven: Proctor & Gamble, Wal-Mart, Johnson & Johnson, China Mobile, PetroChina, Microsoft and ExxonMobil. Five are American companies and two are Chinese. The five U.S.-based enterprises have historically strong management teams and balance sheets. If this was the only criteria, I might take pause when considering the two Chinese companies only because I do not know enough about them to make a judgment, except that they have been very successful."My pal Warren" placed a large bet on PetroChina (PTR), which he has since sold off, but he always makes a big deal about management, so we will give these two the benefit of the doubt. The two also pay the highest yields among the group.
So where do we stand today? We'll stick with all seven and here is why.
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The market continues to be very volatile and trending down. When the seas are this turbulent you want to be on the biggest ships and thus I continue my review of the super cap stocks. This time, I'm going to examine return-on-equity (ROE) and return on-invested-capital (ROIC).

