Colgate-Palmolive Stock: An Essential Core Holding In Your Portfolio

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You gotta love America—in this country, can you get rich by buying blocks of stock in a dish soap and toothpaste manufacturer, hold it for a long time and go about your life, reinvest the dividends, and get rich.

Check out this image of what would have happened if you bought $10,000 worth of Colgate-Palmolive stock twenty years ago, checked the reinvest button on your brokerage account (err…instructed your broker to reinvest the dividends back then), and let the wealth compound over time:

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How is it that a company as seemingly boring as a dishsoap and toothpaste manufacturer is able to turn every $1 you invested in 1993 into $15 in 2013 just by executing a buy-and-hold strategy?

The key to blue-chip investing is this: when you are dealing with a high-quality company, there are rarely any material setbacks in profits. In the case of Colgate-Palmolive, the profits have increased … Read the rest of this article!