A Particular Example To Explain Why Market Timing Is Unnecessary

Imagine that, eight years ago, you had the intelligent thought: “Colgate-Palmolive is an excellent company that is worth buying anytime I can get an earnings yield of 5% or better because I like my odds when I own a company that grows profits 8-11% annually, pays out a dividend around 2.5%, and has such high profit quality that the dividend has been able to grow during every year since 1963. Plus, things like dish soap, toothbrushes and toothpaste, and household cleaning products will be around for a long time and Colgate-Palmolive owns a lot of products in those categories that people gravitate towards almost subconsciously.”

In 2007, you would have gotten a chance to own the company you desired on your terms: Colgate made $1.69 per share in profit in 2007, and would have traded at 20x earnings or below anytime that the stock price was below $33.80. Colgate traded … Read the rest of this article!

Two Recent Purchases

I made two purchases yesterday, and I detailed them for my subscribers over on Patreon which you can access by subscribing here. One of the purchases covers what I believe to be the only mega-cap American stock that can be fairly said to be 1/4 to 1/2 undervalued based on both common-sense and traditional value investing metrics (and I always love it when those two methodologies point to the same direction). The post is a bit longer than usual, coming in at 2,700 words which is approximately 9 pages double-spaced. If you are thinking about subscribing, this would be a good one to join as the two stocks covered fall within the category of good old-fashioned income investing which is the bread-and-butter premise of the blog. … Read the rest of this article!