Malaga, April 25th, 2024 - 36 Square Capital has reinvested in Nestlé, purchasing shares at CHF 90.66 each today. Previously, Nestlé was a part of 36 Square Capital's holdings from 2020 to 2021.
Despite challenges associated with the water products in its portfolio, 36 Square Capital views the stock as undervalued. This valuation is similar to its low during 2019 and the lowest price point during the Covid crisis, around CHF 90. Considering the pre-tax yield of nearly 3.5%, we have opted to reinvest in Nestlé, now constituting 1.5% of our current portfolio.
As a Top 100 global brand, Nestlé enhances our portfolio's strength, characterized by brands that possess substantial moats, high Return on Invested Capital (ROIC), and significant pricing power, aligning with our core principles of value investing.
For details on why 36 Square Capital previously exited its position in Nestlé, visit this link: https://www.36squarecapital.com/post/36-square-capital-sells-off-publicis-nestle-holdings
