Clorox, Kimberly Clark [+ Kenvue via acquisition], Lamb Weston, Nike.
What one thing does this group have in common? Ugly 10 year charts. And compressed price/sales ratios today.
Let’s leave valuation out of it. Which business do you think maintains or expands its market share and competes in the marketplace best over the next decade?
Questions to consider:
Do the companies services or products justify a 20-30% higher price than competitors?
Can Costco, Walmart, or Amazon cut into their market share by establishing a private label substitute?