The BMW Method
Looking at Colgate

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By RaptorD
January 11, 2008

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Colgate, hmm, some love it and some hate it but most of us use their products. BMW-wise, it's pretty boring. I think even I said somewhere here early last year that there is no catalyst for a return. Maybe I was right. That's a rarity but it can happen with Black Swans and all.

The funny thing is, catalyst or no, the more I read about Colgate the more I liked it. So I bought a taste in mid-April. Then a funny thing happened on the way to work one day and sub-prime crap hit the airwaves again and I kept thinking, why won't this dog hunt? I decided it would some day, but who knows when. Then the economic new got worse (a good thing to bottom dwellers.) So what's a BMW'r to do? Double up of course. So I bought more in early August.

Granted, it's not long enough to count for much, but now my weighted CAGR is over 75%. And still I keep thinking this dog might have room to run, what with the flight to safety and all. Anyway I wanted to mention it to my BMW friends, just in case it fell off the radar and in case anyone thought it wasn't completely crazy.

One of the last discussions with whatismyoption was here.

Colgate isn't doing too bad for not going anywhere without a catalyst. And just think if there was a catalyst! Maybe a recession or something like that. So meanwhile Colgate just keeps on running parallel to the average historical CAGR. But wait a minute, maybe not--let's look at the short-term.

Maybe a recession could even be the catalyst. Kind of weird though, so maybe not. What do you think, folks?

Dan, long CL and brushes his teeth 3 times daily like a good boy.