Kellogg Stock Since The Recession

I recently discussed how, contextually, the performance of Kellogg stock these past sixteen years has been nothing short of remarkable considering that the cold cereal market shrunk to about two-thirds of its size over this time frame. Receiving positive returns, let alone the 9.32% annual returns that Kellogg provided, speaks to the value of becoming a part owner in publicly traded businesses with revenue streams that decline slowly if they decline at all, as this provides much advanced notice to use the cash from declining operations to diversify into related yet different businesses with better growth prospects.

But once you, as an investor, have this notice about demonstrable industry difficulties, the question becomes: How should this information affect your contemplation of purchasing a stock like Kellogg?

The short answer: You need to apply the discipline that is necessary to be a successful utility stock investor, pouncing when the stock is … Read the rest of this article!