One of the toughest lessons for budding value investors to learn is patience. While the growth crowd looks at a skyrocketing stock price as a good thing and figures any time is good to jump aboard, we value types spend our time cheering for our favorites to stutter to a stop or plunge earthward for a while. It can be an agonizing wait.
A case in point is Inside Value recommendation Colgate-Palmolive
This is one of those cases where cheap (and Foolish) minds think alike; I actually beat Philip to the punch on Colgate late last fall. Though I did fine with a short-term position in call options, it was one of those times when I wished I'd been less clever and simply purchased the common stock, so that I could have stopped worrying about expiration dates and could have begun pocketing that nifty 2% dividend.
So, I missed my opportunity back then, but the market has a funny way of offering us second chances, and we may be getting one now. With Colgate's turnaround chugging along nicely, and despite more and more analysts coming out with glowing recommendations, the stock has eroded back toward $50 per share. That's not quite as cheap as I'd like it, but we know more about what Colgate's got in store these days, including well-publicized cost-cutting efforts that are coming along this year.
Colgate, like peers Procter & Gamble
For related Foolishness:
- Join us in the hunt for dirt-cheap dream stocks.
- Is there value at fair value?
- See how P&G cleaned up earnings.
- Colgate was a perfect opportunity to profit from pessimism.
- I thought it was a bargain back then, and I think so now.
What kind of wounded elephants is Inside Value's Philip Durell stalking these days? Afree triallets you join the hunt.