Companies with low tax rates
Governments across the world are highly indebted. Corporate margins are extremely high. Corporations lobby of course, but they don’t vote. I think companies with sub-normal tax rates could be targeted and I would look closely at any stocks you own which have low tax rates and ask yourself what the valuation would look like if they had to pay 30% tax.
Corporate Profit Margins have Already Peaked, but Remain High
I am not saying this will happen but It’s definitely possible and actually probable in the medium term. You can still own such stocks of course, but allow something for this risk in the valuation and ask yourself if the low tax rate is derived from high investment or washing royalties through an offshore centre.
Before you go, just a quick reminder that our Forensic Analysis Bootcamp is a great way of improving your analytical skills. For 8 weeks, generally on a Monday evening UK Time, I train a small group in how to improve their analytical skills and to be more proficient at reading balance sheets and spotting opportunities, risks and possible frauds. This content is based on my Forensic Accounting Course which has been delivered to over 500 investors at some of the largest and most successful institutions across the world. You can Learn more by emailing me at email@example.com. Please only think of signing up if you are serious about investing and about taking yourself to the next level.