When considering buying a Christmas gift for a loved one, my first question is not “Is this something I would want?”
I learned this at an earlier age when my mum unwrapped a DVD copy of Kill Bill. She feigned enthusiasm until the film concluded, before delivering the verdict “What a load of rubbish.” I probably should’ve bought a hair styler.
But if I were to gift someone shares this Christmas, the best question I could ask belies the usual logic. “Would I want to own this?” is the best question I could ask.
Unilever (LSE: ULVR) (NYSE: UL.US) is a company I’d be glad to consider as an investment, say, for a family member. It is a business that I’d likely be happy to buy and hold myself for 10 years or more. Its products such as Dove, Persil, Sure and Wall’s fulfil persistent needs to consumers around the globe. They are repeat purchases which become more valuable over time.
I’m encouraged by Unilever’s 15% operating margins – indicative that customers will pay a little extra for its brands. The company trades for around 16 times operating cash flow, and while this is not cheap, I’d hardly call it expensive for a company of Unilever’s quality.
I’m expecting Unilever’s margins to improve if, as expected, its brands continue to command higher prices in fast-growing markets such as India and Brazil. Unilever is a company that could underpin either a portfolio of your own or a family member’s for years to come.
According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…
And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...
It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…
But you need to get in before the crowd catches onto this ‘sleeping giant’.
Mark Stones has no position in any shares mentioned. The Motley Fool UK owns shares of Unilever. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.