Investing is just like anything else in life.
It can be as easy or as difficult as you want to make it.
People have often drawn parallels between fiscal fitness and financial fitness.
Indeed, there are a lot of similarities.
To build wealth, you first need to spend less than you earn; to lose weight, you need to burn more calories than you ingest.
It’s basic math at its core.
But as someone who’s very interested and active in both investing and fitness, I notice further similarities: some people like to complicate things more than necessary.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
Couldn’t agree more about GWW. It’s been in my portfolio for a long, long time and after that beat down last week looks very tempting to me, especially with a yield north of 3% which is still safe and historically high. I’m wondering if GE will also start looking more attractive to our fellow dividend investors. Thanks for sharing.
Keith,
It’s definitely interesting here. I have some exposure to the space via FAST, but GWW hasn’t looked this appealing in a long time. I don’t think it’s been this cheap since I started investing.
Thanks for dropping by!
Cheers.
Thanks for the article. This is a stock I’ve followed for some time now, but I’ve held off on buying shares out of concern about the future impact of Amazon on their business model. I’m not predicting that Amazon will put them out of business, but I do worry about further compression of their profit margin.
Jim,
Indeed. I think it’s a real risk. Of course, that’s a good reason behind much of the decline. So you then just try to model in the impact on the business and make a valuation call from there. Factoring it all in, I think it’s still appealing. And they do substantial business online already. But I view further margin compression as highly likely.
Best regards!
Appreciate the analysis and this is a very timely article for me. I’m looking to add 5 stocks to my portfolio and I think I’ve settled on 4 of them. So, I’m trying to decide on a 5th and GWW is certainly a consideration. I hate how pricey the stock is, but I realize that I should look at value rather than price. I too am concerned about the impact of Amazon, but GWW seems like it has strong enough fundamentals to weather the storm. Decisions, decisions.
DP,
GWW is a pretty solid long-term idea here. One of the best dividend growth track records out there. And the yield is really attractive. I can’t remember it ever being this cheap.
However, the sticker price of a stock is irrelevant. A $500 stock could be much cheaper than a $1 stock. Of course, the reverse is also true. Ultimately, it’s value that matters.
Cheers!