Whenever I bring publicly listed food and beverages (F&B) companies up for stock investment discussions, the reaction I get is always the same. The typical comments are they have High Price-to-Earnings ratio, expensive share price per unit, little capital gains left, and the ultra low dividend yields.
Well, there is a good saying that goes like: “Good stocks aren’t cheap, cheap stocks aren’t good”. Perhaps those who dismissed a good F&B company might have judged the company based on the trailing price, yield and valuation ratios without even understanding the business of the company and its future prospects first.
Let me show you why, great F&B companies are stocks that you can hold on in your portfolio forever!
1. Stable Year-on-Year Revenue Increment
How is it possible that companies like Nestle Malaysia Berhad (Nestle Bhd), Carlsberg Brewery Malaysia Berhad (Carlsberg Bhd) and Heineken Malaysia Berhad (Heineken Bhd) can start revenue growth trends that just go on and on?...