No. of Recommendations: 7
Because I mentioned Nestlé, without saying anything more than "the price is down", I think I am obliged to add a few details (especially after finding something completely new for me I don't like).
I waited for many years for Nestlé to be within reach, price-wise.
A while ago at around CHF 95 I finally bought my first shares (and quickly sold them again). I was wrong, or at least my timing was (CHF 82 now). But as lower it gets as more tempting it is, as a economically great company which is out of favor.
There is a reason for it's price coming down since years. Nestlé has problems. Not market saturation, in my view. Rather a problem of reputation shattered by a chain of continuing mistakes: a) Water scandal (supposedly(!) contaminated, in France), b) heavy palmoil usage (linked to disappearing rain forests), c) unnecessary animal tests/killing, d) contaminated baby milk powder. a+d were one-time events with consequences so strong that the firm surely does anything to avoid repetition. On b they are seriously working and are very transparent about it.
Remains constant critique on their water usage. Plus c --- of which until shortly ago I didn't knew and which for me personally is the "No-go": Testing&killing of animals for Botox treatments in their "Skin Care" program. And indirect animal cruelty, for example in form of being responsible for the breeding of heavily overweight animals to test their "light" animal foods. I hope the constant critique on c causes them to change those practices so that I can buy them, because:
Nestlé for me is a (economically) longterm great company which is in distress because the "Zeitgeist" is against it. But "Zeitgeist" is temporary, is fluctuating. Nestlé since many decades is not. So the company fell from grace, is shunned and out of favor - but still as dominant in it's areas as before which might make a great longterm investment case.
