Benjamin Graham’s famous question that all investors should ask themselves before making any purchase decision (On what terms, and at what price?) even applies to the game show “The Price Is Right” as well.
Check out this recent anecdotal article written about contestants from the famous game show:
One of the mainstream appeals of a show like “The Price Is Right” is that it allows financially illiterate people the opportunity to receive a good or service that they could not otherwise afford. Even though it is irrational (and in some ways even perverse), no one wants to see the guy with a fully funded 401(k), a hundred grand in emergency savings, and a taxable portfolio stuffed with blue-chip stocks take home a $75,000 Jaguar. You want that car to go to the widow raising two children on $40,000 per year because you know that if they do not win … Read the rest of this article!
There are about a dozen large-cap publicly traded businesses that I have wanted to cover in depth, but have perpetually declined to do so because I wanted to wait for an opportunity for the stock price to be fair (or better). Kimberly-Clark has now reached such a price point at $104 per share.
On the consumer side, Kimberly-Clark is most famous for being the diaper maker that is responsible for Huggies, Pull-Ups, GoodNites, Kotex, Lightdays, Depend, Poise, and Little Swimmers as well as tissue brands such as Kleenex and Viva (Kleenex is one of those brands that has proven so successful that people don’t customarily ask for a tissue but rather say ‘Gimme a Kleenex.’”
These brands, as you might expect, are stodgy and recession-resistant. It doesn’t matter what the economy throws at you; you’re going to pay an extra $0.40 for Kleenex rather than the generic tissue.
My problem … Read the rest of this article!