AI, technology, processors, software…
All of this has been driving the stock market in recent years. But investors are starting to forget about “classic” value stocks like Procter & Gamble $PG.
The company's shares are down nearly 20% over the past year. For a stable firm that generates massive cash flow and whose products are, quite literally, constantly in use, that's a significant discount.
A company with a market cap of over $330 billion and a dividend yield of 2.92% is now trading at about the same levels as in 2020.
Do you have this company in your portfolio as a stable holding, are you planning to buy, or, given the current situation, are you not focusing on similar stocks?
Yeah, similar ones are Clorox, Hormel Foods, General Mills, or Diageo. The question is when they'll hit bottom — many companies took on excessive debt during the period of low interest rates and those businesses are stagnating, which means they might not be a good investment and could languish for a long time...
The company is dead and the business isn’t going anywhere, so I’m definitely not focusing on these stocks.
Virtually zero FCF growth since 2020 — maybe that’s why the price is at 2020 levels?
The consumer sector still hasn't really recovered since COVID... I'm glad I got out of it. I don't know about the future.