Creative giant Adobe still has a capacity for innovation

The Motley Fool’s Take

For decades, Adobe has been a leader in creative and enterprise software, and many of its products have become the benchmark in their respective industries. This includes Photoshop for image editing, Premiere Pro for video editing, and Illustrator for vector graphics. Adobe’s digital media segment also includes Acrobat, an application for creating, editing and sharing digital documents via the ubiquitous PDF file format.

Adobe also offers analytics, marketing, and commerce solutions, helping organizations engage with consumers and delight them with personalized content. Adobe’s two complementary software suites (Creative Cloud and Experience Cloud) collectively facilitate the creation and delivery of digital content. The company has acquired a strong competitive position in several markets, which has translated into strong financial results. For example, in the first quarter of fiscal 2022, adjusted revenue grew 17% year over year, while operating cash flow was $1.77 billion.

Adobe’s industry-leading product line and capacity for innovation should drive growth for years to come. And with new creativity tools like Substance 3D for 3D design and Aero for augmented reality, Adobe might even be a key player in the growing metaverse industry.

Recently, Adobe’s stock price has been attractive. (The Motley Fool holds positions and has recommended Adobe.)

ask the fool

From ML to Kinston, NC: I want to invest in stocks and maybe a mutual fund as well. How can I do this?

The madman responds: For stocks, open an account at a reputable brokerage. (You can read some of them at Broker.Fool.com.) It’s usually easy to do: you fill out an application and deposit money into the account, then you can start buying and selling. You can probably configure everything online too. Most good brokerages will allow you to set up individual retirement accounts as well as regular taxable accounts.

Many brokerages offer access to millions of mutual funds, so you may be able to invest in the fund or funds that interest you in your brokerage account. (A 401(k) account at work will usually also offer mutual fund options.) Alternatively, click on the parent company of the mutual fund (such as Vanguard or Fidelity) and see if you can invest directly from there. Some funds have minimum initial investment requirements, such as $500 or $3,000.

You can view mutual fund track records, fees, and other information on Morningstar.com. Also consider exchange-traded funds – they are like mutual funds but trade like stocks, with no minimum investment requirement.

Note that for many of us, low-fee index funds, such as those that track the S&P 500, are the easiest and best way to access stocks.

Active mutual funds can’t compete with indices – again

From VS to Syracuse, NY: I don’t read footnotes in corporate financial reports. Should I?

The madman responds: Ideally, yes – you may come across useful things to know. These may include the accounting methods the company uses when preparing its financial reports or the different interest rates the company pays on its debts.

school of fools

Learning more about and from Warren Buffett can improve your money management and investment results.

Buffett turns 92 this year, and he’s been earning money diligently for more than 80 years. He has topped lists of the richest people in the United States and around the world several times, though his fortune is now smaller than it would be if he hadn’t donated billions for many years. years. The philanthropist, who is based in Omaha, Neb., donated more than $4 billion in 2021, and he’s given more than $46 billion in his lifetime. Yet, his net worth was recently $93.4 billion.

FILE – In this May 5, 2019 file photo, Warren Buffett, Chairman and CEO of Berkshire Hathaway, speaks during a game of bridge after Berkshire Hathaway’s annual shareholders meeting in Omaha, Neb. (Nati Harnik/ASSOCIATED PRESS)

How did he get so rich? Well, by investing. He started working hard when he was still a young boy and he bought his first shares when he was 11 years old. In 1965, he became the majority owner of Berkshire Hathaway, a struggling textile company. This company didn’t make him rich, but his various other investments did, and over time he turned Berkshire Hathaway into a massive conglomerate.

Today Berkshire Hathaway encompasses many companies, such as Benjamin Moore, Brooks, Clayton Homes, Duracell, Forest River, Fruit of the Loom, GEICO Auto Insurance, International Dairy Queen, Justin Brands, McLane, NetJets, Pampered Chef, Precision Castparts, See’s Candies, Shaw Industries and the entire BNSF Railroad. He also has a large stock portfolio, recently owning around 20% of American Express, 12.5% ​​of Bank of America, 9.2% of Coca-Cola and 5.5% of Apple – the largest position. of Berkshire.

In total, over 57 years, Buffett (along with his business partner Charlie Munger) has grown the value of Berkshire by an average of 20% per year, about twice the growth rate of the S&P 500 – and enough to turn an investment of 1 $000 in addition to $34. million.

Obviously, Warren Buffett knows a thing or two about business and investing. He also likes to share what he knows, and you can learn a lot from his annual shareholder letters (on BerkshireHathaway.com) and books such as Tap Dancing to Work: Warren Buffett on Virtually Anything, 1966-2013 by Carol Loomis (portfolio, $18).

My smartest investment

From SC, online: My smartest investment was to marry my wife. Seriously. My net worth has increased tenfold since I got married. It’s not because she had crazy amounts of money, but because she and I invested well. She gives me focus and purpose.

The madman responds: You’re smart to realize that some of our most profitable investments can come from our non-financial businesses. Choosing a partner is an important decision that can have serious consequences, both financial and non-financial.

Before committing to anyone, it’s always a good idea to make sure you have compatible financial goals, philosophies, and habits. Otherwise, one person might be diligently saving for the future while the other racks up a lot of credit card debt. Marrying someone usually involves tying your finances and your financial future together, so it’s a bit like an investment. For best results, regularly discuss your financial goals, plans, and progress toward them.

It can also be a powerful way to invest time in those you love. Spending quality time with your family and friends can be good for you and them in many ways. Time spent with young people can be particularly valuable, as it boosts their confidence, their mental health and even their physical health.

Investing in your own health by exercising and eating nutritious foods can also pay dividends, potentially extending your life and reducing healthcare costs.

Who am I?

My roots go back to 1910, when my then 18-year-old founder sold two shoeboxes full of picture postcards in Kansas City, Missouri. I quickly gave away Valentine’s Day cards and Christmas cards with envelopes. I introduced fancy wrapping paper in 1917 and collectible ornaments in the 1970s. In 1984 I bought the Crayola crayon business. The TV shows I’ve sponsored have won over 80 Emmys. Today, I’m worth about $3.5 billion and employ about 27,000 people worldwide. My subsidiary Crown Media has three cable channels and I even have a property development company. Who am I?

Don’t remember last week’s question? Find it here.

Answer to last week’s quiz: EssilorLuxottica

Motley Fool: OLED display company set for massive growth

About Robert Wright

Check Also

MGM Resorts and Others Urge FERC to Reject Incentives for NV Energy’s $2.5 Billion Greenlink Transmission Project

Diving brief: Nevada taxpayers’ attorney Public Citizen and MGM Resorts International and Caesars Enterprise Services …