Posted byHitesh Patelat January 19. 2013
Coming to specific stocks in this series of great blue chips I like ITC. It has been consistently churning out good consistent results over the years.
The next trigger I see is the turnaround of the fmcg business of ITC -- namely biscuits, soaps, shampoos, bingo eatables etc. -- Once this business starts contributing meaningfully to consolidated profit figures, company can leapfrog into another growth trajectory.
And by the time this happens the basic businesses of tobacco etc will keep on chugging along.
So for me ITC remains a preferred pick among the blue chip pack.
Posted byDonaldat January 19. 2013
I agree with you. I too think there is great opportunity ahead of ITC, and it has been progressing on all fronts. I am also biased since I have been holding it for 6 years plus with great results (not counting the hefty dividends).
We will attempt a shortlist soon, as we gain a few more insights/perspectives.
Posted byT Anil Kumarat January 25. 2013
Prof Sanjay Bakshi has discussed about Nestle in one of this lecture, which I thought is relevant to the discussion on this thread. Key takeaways
In 1986, Nestle was trading at PE of 46 and in 1992 it was trading at a PE of 62. It is a stock in which investors have made money irrespective of the price they bought it.
There were some corporate governance issues at Nestle but Prof. insist that Itas BUSINESS, PEOPLE, PRICE IN THAT ORDER.
Buffet quote: Whether appropriate or not, the term avalue investinga is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price earnings ratio, or a high dividend yield. aCorrespondingly, opposite characteristics a a high ratio of price to book value, a high price-earnings ratio, and a low dividend yield - are in no way inconsistent with a avaluea purchase.
Ddownload lecture 28 from here for complete case study:http://www.sanjaybakshi.net/bfbv/