Video Overview
This May 2018 investment update begins with U.S. corporate earnings and market conditions. A fund website is used to compare the Franklin Growth and High Technology funds with the S&P 500 and NASDAQ over six-month, one-year, three-year, and five-year periods. The middle sample turns to Apple, Facebook, PayPal, and NVIDIA, reviewing period returns and company events while noting that individual stocks generally fluctuate more than indexes. The final two samples demonstrate a method for estimating a long-term internal rate of return from the current price, dividends, an assumed growth rate, and a future sale price. Different holding periods and terminal values are then tested to show how the estimate changes. Fund rankings, company preferences, return figures, and valuation assumptions all belong to the information and views presented at the time.
Key Takeaways
- Two Franklin funds are compared with SPY and the NASDAQ across several periods, but historical rankings do not establish future results.
- Funds available to investors in Taiwan are presented as tools for U.S. market exposure, reflecting the speaker's product preferences.
- Period performance for Apple, Facebook, PayPal, and NVIDIA illustrates both stock returns and higher volatility.
- Dividend growth, holding duration, and an assumed terminal share price are used to demonstrate an internal-rate-of-return calculation.
- The valuation example shows how changes in the purchase price or terminal value can materially alter the estimated long-term return.
Chapters
About 00:00:00 · Earnings and fund options in Taiwan
The opening reviews U.S. company results and begins comparing two Franklin funds with major indexes.
About 00:03:37 · Performance from six months to five years
Funds, the S&P 500, and the NASDAQ are compared across several specific periods displayed in the video.
About 00:08:00 · Technology-stock returns and volatility
This sample reviews period performance and company events involving Apple, Facebook, PayPal, and NVIDIA.
About 00:12:22 · Dividend growth and long-term cash flow
An assumed dividend growth rate and future price are used to demonstrate cash-flow and internal-return calculations.
About 00:16:00 · Price, terminal value, and valuation sensitivity
The closing changes the purchase and terminal prices to show how assumptions affect the estimated long-term return.
Related Topics
May 2018 investment update, Franklin funds, SPY, QQQ, technology stocks, fund performance, dividend growth, internal rate of return, valuation assumptions
This page was prepared with AI from selected portions of the video's audio to help readers understand the main topics. It may omit secondary material or contain transcription errors; the original video remains authoritative.
