Summary Even investing in high quality companies can result in inferior investment returns. Investing in a high quality company does not mean invest at any price. Pay particularly close attention to valuation levels. We are in the late stages of one of the longest bull markets in US history. Investors should be cautious when making [...]
Summary Ingredion has pulled back ~25% from its 1 year high of $146.28 set late January 2018. When Q1 results were released, management lowered its FY2018 adjusted EPS guidance from that provided when FY2017 results were released. It is facing headwinds in the form of higher production costs caused by inconsistent demand in the US [...]
The following is a list as at June 24, 2018 which reflects all the companies in which my wife and I own shares (not just those in the FFJ Portfolio). It does not reflect the number of shares per company we own nor our average purchase price. [...]
Summary Brown-Forman (BF) is a high quality company which has richly rewarded shareholders over the years. BF is a classic example of why exclusive reliance on stock screeners to identify investment opportunities is short-sighted. The company faces uncertainty as a result of foreign countries imposing retaliatory tariffs in response to ill-advised tariffs announced by the [...]
Summary ADP reported Q3 results May 2 in which it announced an upward revision in its FY2018 outlook.’ At the June 12th Investor Day, ADP indicated it is accelerating the pace of margin expansion and it now targets its prior 3 year margin targets to occur one year sooner. The anticipated increase in interest rates [...]
Summary SJM is facing headwinds and revenue growth and profit margins are expected to remain under pressure amid a competitive environment and challenging retailer dynamics. SJM is currently exploring the divestiture of its US baking business and a sale of this business will likely impact FY2019 projections. Shareholders have been aptly rewarded over the long-term [...]
Summary Cummins has retraced ~26% from a high of ~$194 set at the end of January 2018. The company is forecasting strong revenue growth but warranty costs are taking a bite out of profits and further significant charges (~$400 million) are possible. CMI’s 15+ year returns greatly exceed that of the S&P500. While CMI has [...]
Summary Hershey’s current valuation is similar to that evidenced in FY2009 at which time we were experiencing that ‘little event’ called The Financial Crisis. HSY is unlikely to appeal to investors seeking companies with ‘high octane’ growth. The company’s dividend yield and valuation are at levels not evidenced in several years. I currently have a [...]
Summary HRL, as with other companies in the Consumer Staples sector, is experiencing headwinds such as changing consumer tastes. Its stock price has not been negatively impacted to the same extent as other members of this sector. HRL Investors have not experienced significant positive investment returns over the last couple of years. They have, however, [...]
Summary CSCO continues to shift toward the development and sale of more software and subscription-based offerings so as to improve the predictability of its revenue. It has an extremely strong balance sheet and generates significant FCF on an annual basis. I expect investors will continue to be rewarded with double digit percentage annual dividend growth. [...]
