Halls of Shrewd'm / US Policy❤
No. of Recommendations: 0
Some smart BRKB holders have owned Nestle forever: First Manhattan, Guy Spier, Tom Russo etc.
Chart is horrible and the negatives are well known (coco prices, less pricing power, sluggish volumes) but this global blue chip has gotten very cheap. Rare.
Remember they invest like crazy and have the capacity to suffer and reported earnings are understated.
Balance sheet is pristine.
NEVER could duplicate with reach into 169 countries and have encountered distress for 150 years and continue to punch out profits and high ROIC.
Views?
No. of Recommendations: 0
Forgot to mention 29 years + of dividend growth and massive stake in Loreal
Earnings are very understated. Think GEICO.
No. of Recommendations: 1
Negatives: ..... coco prices
Forget about that. It's not Hershey. Chocolate is just one of many income streams of the world's food giant.
Some smart BRKB holders have owned Nestle forever
After both waiting since a long time Jim bought, I bought a little (not claiming to be a smart BRK holder), but do not expect longterm returns to be any better than the index. It's not cheap, probably will never be, but since ages it's far more constant and less variable than any index, so rather than a stock I see it more as a longterm 7% Bond (with a tiny short-term push possible as it's currently a little less expensive than usual).
No. of Recommendations: 0
PE is not useful here
When was it cheap?
No. of Recommendations: 5
Never.
Swiss saying : "Von der Wiege bis ins Kaestle - Nestlé" = "From Cradle to Grave - Nestlé"
No. of Recommendations: 3
What is the attraction of Nestle? Stock price has been flat for 5 years, and for good reason - sales have barely increased at all.
tecmo
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No. of Recommendations: 5
What is the attraction of Nestle? Stock price has been flat for 5 years, and for good reason - sales have barely increased at all.
Don't ask me, I can't figure it out.
It has traditionally traded for nosebleed prices in relation to earnings, and now the share price has come down a lot so that it is just trading at prices that seem expensive (21 times earnings) but not outrageously so. I suppose the investment case is that it might go back to its usual nosebleed prices, but I can't see any better reason. Berkshire already owns one of these non-growing highly processed food giants (Kraft Heinz) at 12 times earnings and I don't see why Buffett or anyone else would want to buy another, more expensive one.
dtb
No. of Recommendations: 1
It's irrational love 😀
I know it. I love Unilever though it has done nothing for me. But my dad owned shares of Hindustan Lever (started with one share from my grandfather), it got to about $10000 and we paid his healthcare costs out of it (in India). So we are all not WEB.
The irrational part of it is that UL or Nestle are never going to go away, unlike Tesla or even Amazon. I don't know what multiple to put on peace of mind.
No. of Recommendations: 1
The irrational part of it is that UL or Nestle are never going to go away, unlike Tesla or even Amazon.
Isn't that actually rational?
I don't know what multiple to put on peace of mind.
A lot. Ask Berkshire Hathaway shareholders 😉
No. of Recommendations: 2
Funnily enough, i just started a position in UL. hope with new management the company has turned a corner and as you say, "peace of mind".
