Buying NWL @ $22.65
2% position
NWL is a stock that I've always had bad luck trading. I like the story and the products - and the valuation is always tempting - but something about the business tends to underperform and underachieve. So the attractive valuation persists.
That said, the underlying business has performed at least as well as others in the category - but the stock price hasn't. So we get to buy NWL today with a hefty 4.1% dividend yield and only 13.1x P/E.
Using the formula I introduced here - when I bought (more) CAG - NWL shows me a 9.3% total, long-term return vs. the S&P 500 at ~7.1%.
I'll dig more into NWL and the strengths and weaknesses of this valuation formula in the coming weeks, but for now I'm continuing to move slowly in the market as it continues to rise.
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