Gillette Razor Stock: The Rise and Fall

Of the few crowned jewels in the Procter & Gamble crown, Gillette razors may very well occupy a spot at the top of the list, though I suspect a strong argument can be made that Tide detergent and its related products such as the pods. Gillette did not enter the Procter & Gamble portfolio until the 2006 acquisition, making high-profile investors like Warren Buffett billions of dollars after P&G paid a substantial premium to gain control over the razor market.

The interesting thing about Gillette is that it can largely credit its success to an immense operating budget and the acquisition of patents and competitors over the years.

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State Farm’s Long-Term Life Insurance Strategy

I have long been intrigued by business institutions that have found ways to survive for not only decades but centuries. How come York Water was able to make dividend payments during the Battle of Gettysburg and find a way to still pay shareholder dividends all the way into 2017? How come the little Wall Street bank whose charter was written by Alexander Hamilton manages to collect exorbitant fees stewarding over ADRs under its current name BNY Mellon? My most recent case study involved the study of how State Farm became a major player in the life insurance industry.

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Visiting Governor Frederick Bates’ Grave

I just visited the Thornhill Estate, which is the ancestral family home of Missouri’s Second Governor Frederick Bates. Because Bates died of pneumonia in his first year of office as governor at the age of 48, his historical impact has been generally neglected. While he was alive, he was a bitter rival with Meriwether Lewis and William Clark because they had greatly differing views on settling land title disputes.

Apparently, Governor Bates would wheel himself to your house if you tried to obstruct his legislation. Could you imagine if politicians did that today?!? I guess after getting tag-teamed by William Clark Meriwether Lewis, and Stephen F. Austin, the temper of the local Cotton Association’s President doesn’t seem so bad in comparison.

After Thomas Jefferson invoked his constitutional powers to negotiate treaties to acquire 10+ million acres from Napoleon and the Kingdom of France for three cents per acre in the Louisiana Purchase, President Jefferson appointed a rising Detroit postmaster named Frederick Bates to be in charge of recording land titles in the Missouri Territory.

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Chevron Stock Price Over Time With Dividends

When people discuss stock prices for a given business, they often perform their analysis by looking at the highest recent price that a stock achieved and then compare it to the subsequent low. With a business like oil giant Chevron, they might point out that Chevron’s stock price hit a high of $135 per share in 2014 and then fell to $69 in 2015. And then this 48% paper loss is often touted as one of the risks with stocks.

These types of business risks can be dramatically mitigated if you perform a more wide-reaching analysis that gives a more clear-eyed view of the risks associated with business ownership if you incorporate the advantages bestowed by dividends and general business growth that occur over time.

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How To Invest Money Conservatively

It is an unfortunate tendency that, during times of normal and superior economic conditions, too many people becoming entranced with the get-rich-quick type schemes and not enough interest is paid to making conservative investment decisions that will truly reveal their usefulness during the next downturn in the economy.

There are two things that are more important to investing than anything else: liquidity, and the ownership of some assets somewhere that will generate income somewhere in the most adverse of conditions.

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