Darren SissonsReckitt BenckiserRBGLYDON'T BUYMar 05, 2024

He recently sold. Sadly, baby died from its high-risk infant formula. $60M judgement. Billions more in lawsuits just waiting in the wings. Asked himself if he'd buy today if not already owned, the answer was no, so he sold.

Own this for defence. They've benefitted from inflation. Are getting into emerging markets which enjoy population growth, and in turn fuel company growth.

A consumer stock. It has detergent, some pharmaceuticals, lozenges, etc. Has this for his children’s and grandchildren’s portfolios. Dividend yield is very small because a lot of their cash flow is going towards product development as well as acquisitions.

Makes everything from over-the-counter birth-control products to food sauces. This has probably been the most popular European consumer staples stock. Very respected management team. Unfortunately most of that has been caught up in the price. Wouldn’t recommend at these price levels.

Their pharmaceutical division is about 20% of their total revenues. 80% of the business is doing well but 20% is going to suffer a little bit when their big drug comes off patent. Watch the stock and see if there is an entry level a lower price from here. Very good company. Executes extremely well on the products that they have. Margins are high. Dividend growth over time is there.

Is it a good entry point after their big drug goes off-patent? When companies come off patent, it really comes down to the quality of the management team. This company’s management has done a terrific job at growing earnings, cash flow, dividends and sales. Doesn’t think it would be that great a concern that one of their drugs is coming off patent because they can just turned around given that they’ve got more of the consumer product business as a backdrop.