I have long used a barbell investing strategy, where risky
investments (like biotech) are offset by more staid and predictable
holdings like 3M (NYSE:MMM).
Ideally high-quality mega-caps like 3M can be held for many, many years
at a stretch, allowing good management teams to generate substantial
returns from the businesses.
Almost all good things have to
eventually come to an end, though, and I can't in good conscience tell
anybody else that they should look to buy 3M today. Based upon the
company's recent financial performance and mid-December Investor Day I
still believe that this is a very high-quality, very well-run
industrial, but it is difficult to see how these shares are attractively
priced on their intrinsic merits.
Follow this link for more:
3M Is Good As Gold ... And Priced Like It
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