Weekly Thoughts 21 Dec 2018

In my last newsletter – 3 weeks ago (shocking) – I wrote about short-termism, a topic from a brochure received at an investment presentation.

The other aspect I wanted to write about from that brochure, was around some interesting information on a few global companies. Companies that will last, last through global Trade Wars, Trumpism, Brexit, the Yellow Shirts…. Etc. Here are a couple of examples given to us:

Colgate-Palmolive. More than half of the world’s population buy Colgate products. Go look in your house, you’ll have them. An interesting thing here, is that we were told that in India most people only brush their teeth every three days. So imagine the growth potential in sales when these “most people” can go to every two days. Colgate is a massive player in the Indian and Chinese market.

Nestle, with over 400 factories in 86 countries, owns over 2000 brands and sells over a billion products in the world, every day.

L’Oréal, the world’s largest cosmetics company, expects to add one billion new customers over the next 10 years, due to urbanization and more and more women entering the workforce.

None of those political interference problems mentioned above are going to stop someone buying the toothpaste they need or the food they need or the beauty products they want. So profits and dividends will continue.