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…
If you bought $100,000 worth of Nestlé common stock on the first day of trading in 1991, you would, as of October 7th, 2012, own 14,306 shares. At 60.40 CHF per share, this is a market value of 864,082.40 CHF. Translated back into United States dollars, that is $929,718. On top of the $929,718 in stock you own, you would have collected years of cash dividends. How much? Let’s take a look at the whole picture.
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…