LONG OR SHORT TERM INVESTING: Case study Nestle Nig. Plc

Is it even imaginable investing in Nestle at its current price of about N1,500.

Definitely, considering its PE Ratio, Earnings Yield and probably dividend yield, one might be compel to say Nestle stock is a no go area for profitable investment because of its high price.

But come to think of it, the price did not overnight got to this point. I have had interaction with a retiree who said she bought Nestle at 70kobo, I mean seventy kobo and not 70 Naira. In dividend alone, she would probably not earn anything less than N20 not to talk of the price appreciation she now enjoys.

What are the lessons here for us to learn? You may definitely not have the capacity to still buy Nestle at the current price and status but you can definitely look for a cheap stock that has a potential to be a future Nestle.

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