Is anyone buying nestle?

[matjone]

Looking at it really quick it seems like the PE when you take out special items would be about 12.

[xxx1313]

yeah, exactly. but taking out special items it always traded with a small discount to kft, danone or unilever. i like all those stocks as a store of value (i hold no bonds - these stocks are my proxy for bonds), but their margin of safety is not huge at the moment. if i could buy only one stock for the next 20 years, it would be nestle though. low risk, defendable business, some moat, reasonable price, good management.

[rjstc]

yeah, exactly. but taking out special items it always traded with a small discount to kft, danone or unilever. i like all those stocks as a store of value (i hold no bonds - these stocks are my proxy for bonds), but their margin of safety is not huge at the moment. if i could buy only one stock for the next 20 years, it would be nestle though. low risk, defendable business, some moat, reasonable price, good management.

I agree. Would you buy now or wait a while? Price you pay determines return. I checked earnings forcast with Schwab and Credit Suisse and they were about $3.70 for 2011. Suisse also mentioned weak dollar vs strong Franc in last month has hurt value by about 8%.

[xxx1313]

I bought a little bit of Nestle stock in the second half of 2009 when its adjusted  PE was about 10, unadjusted it was about 12. Since then, management did a really good job. The stock is a good "hold" in my opinion. You can buy a little bit, but right nowthere are other attractive opporunities out there. Some tech stocks and European energy stocks seem to be very cheap (higher margin of safety, but probably that higher margin of safety, in comparison to Nestle, is required).

 

CHF/USD does not matter in the long run. Nestle is a global player, so curreny movements do not matter much. Moreover, I would feel saver having some CHF than too much USD. Switzerland does not have deficit problems and is a good place for a headquarters.

[rjstc]

I bought a little bit of Nestle stock in the second half of 2009 when its adjusted  PE was about 10, unadjusted it was about 12. Since then, management did a really good job. The stock is a good "hold" in my opinion. You can buy a little bit, but right nowthere are other attractive opporunities out there. Some tech stocks and European energy stocks seem to be very cheap (higher margin of safety, but probably that higher margin of safety, in comparison to Nestle, is required).

 

CHF/USD does not matter in the long run. Nestle is a global player, so curreny movements do not matter much. Moreover, I would feel saver having some CHF than too much USD. Switzerland does not have deficit problems and is a good place for a headquarters.

Thanks. Better than me. I have been buying Nestle for about the last six months. I assume ? techs in US and what Energy stocks do you think are good? I own COP now. Sold out a month ago or so of ATPG. Just bought some HRT through Canada. Sold out of BBEP.