When I previewed 3M’s (MMM)
capital markets day in my last article on the company, I said that I
expected a presentation that was more or less “more of the same”. It’s
not really in 3M’s corporate DNA to make major course corrections, and
besides, I think there is a lot of wisdom in following an approach of
“if it’s not broken … don’t break it”. 3M more or less fulfilled those
expectations, laying out a five-year plan that looks a lot like the
company’s recent history, albeit with what I believe is a more
growth-conscious focus.
Between a “steady as she
goes” investor day and a disappointing third quarter hurt by what I’d
call non-structural issues, there’s not a particularly strong case for
liking 3M if you didn’t already like it. The valuation is not really in
bargain territory and next year looks challenging given slowdowns in a
lot of significant markets (including autos, electronics, and “general
industrial”). Still, as a high-quality name and one of the most
R&D-focused multi-industrials, I have no problem with holding on to
3M today as part of a long-term core portfolio.
Read more here:
As Expected, Evolution, Not Revolution, From 3M
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