Campbell Soup was founded in Camden, New Jersey in 1869. More than 150 years later, the red and white label still sits in American cupboards as reliably as it did for our parents and grandparents. For generations, Campbell’s represented stability. It was the kind of company people pointed to when teaching the basics of investing. A household name. A recession resistant staple. A business that seemed immune to the fads and cycles that disrupt the rest of the market. Slowly, the tide has shifted and hear I sit writing this with questions. Today, the dividend payment came and their sense of stability is being tested. Campbell’s is now being discussed as a potential removal from the S&P 500. The implications and effects of this are, "massive". The stock ended yesterday at $20.50 with a market cap of 6.1 billion dollars. The dividend yield has climbed to 7.61 percent. That is... because the stock price has fallen, not because the business has suddenly become more profitable an...
Exploring the mechanics of capital, the discipline of compounding, and the margin of safety found in a meaningful life.
A periodical by Michael Medeiros