Adding More Consumer Staples to My Stock Collection
I am now determined to dilute my selection of equity assets with some more conservative items, as my portfolio has a clear slope to growth stocks, AI-related and cloud segments. Mostly, I own soaring stocks like Advanced Micro Devices (AMD), NVIDIA (NVDA), CrowdStrike (CRWD), Adobe (ADBE) or Dell Technologies (DELL), which are still providing me with extra profit. I am pleased with the current results. Yet, this set constitutes a thick and too strong drink, which badly needs some water to make extremely high profit-to-risk ratios more balanced. It could be easily done with the help of popular consumer staples.
I have several shares of the economy chain of Walmart stores (WMT). When bought below $150, it gives around 13% at a one-year investment horizon. Not much, but at least three times better than placing extra cash into US Treasury bonds or money market funds. This month I got a stake in Mondelez (MDLZ) chocolate factory. In the same way, I would like to invest some of my free cash to a stable business of Procter & Gamble (PG). Its latest quarterly report was released on January 23, and it was solid enough for its market value to climb by 7.5%. However, there is still a 4% room to approach and test PG's all-time high of December 2021. According to a more favourable scenario, its record Q4 EPS (equity per share) of $1.84, based on the absolutely record revenue for the second half of the last year, may produce a positive effect on further climbing.
Even if men may easily change Gillette razors for some other brand, wives and daughters would never stop buying their favourite daily hygienic goods like Tampax, Naturella, Always, shampoos like Pantene and Head & Shoulders, Max Factor cosmetics or Fairy, Tide and Comet, as well as Pampers for their babies or elders. Therefore, I consider the risk as very low even in case of additional price hike actions, as folks are not going to give up their addiction to those kinds of small and simple things.
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