Some of you had asked me to explain how I research stocks – specifically, where I look for investment ideas, which data sets I use, and how I find potential holdings for the portfolios I manage for my household and businesses.
The Japanese have a concept known as Arigata-meiwaku. The rough translation is “Unwelcome Kindness” or “Misplaced Kindness”. Arigata-meiwaku is used to describe a situation in which someone does something for you that you didn’t want them to do, and you tried to avoid it. Nevertheless, the person went through with the plan, determined to help you or…
I’ve done case studies in the past of slower growing, highly profitable businesses such as Clorox, Nestlé, Coca-Cola, Procter & Gamble, and Colgate-Palmolive among them. We’ve also discussed case studies of some initial public offerings, such as an investment in Tiffany & Company twenty-five years ago. I thought it might be interesting to look at another…
Personally, my household owns shares of Nestlé SA, the Swiss-based chocolate, water, coffee, condensed milk, packaged food, and nutrition giant. I’ve never been able to get as much of it as I want due to valuation1, but whenever the stock is within striking distance of my conservatively estimated calculation of intrinsic value, I write a…
One of the additions I have been considering adding to the KRIP is The Clorox Company. However, it appears somewhat overvalued right now, offering a lower earnings yield and slower sales growth compared to the S&P 500 if you view the index itself as a single stock, which doesn’t bode well on a relative basis. That…