Bouleversee wrote:I paid 728p for my holding in March 1999 and they had risen to 7938p by May 2017 so at one time I thought they were terrific. The last few years have indeed been disappointing but at today's price of 5700p they are still showing me a better return than many of my holdings, which include quite a large number of losses. I'm hoping they will pick up but who knows?
I suspect with a company like Reckitt it's a case of 'fix or be fixed'. I remember that period in 2017 and I think some were suggesting it was headed into the hundreds! I think all companies go through rough patches from time to time. I am quite prepared to believe Reckitt will not relive past glories from its golden period in the 2000s, but I think it has potential to deliver good returns. It has resilience and, indeed, paid its dividend throughout the pandemic which is more than many companies!
A few years back, Proctor and Gamble looked in a bit of a state but has recovered quite well.
Bouleversee wrote:What did Terry Smith have to say about the situation?
I believe that Terry Smith viewed Reckitt's share price as particularly strong due to temporary factors, such as the boost in cleaning during the pandemic and consequent rise in sales. He therefore sold it around the start of the pandemic in 2020, because he saw better value in other companies which had, conversely, seen temporary factors weaken their share price (such as Nike and Starbucks). These companies since recovered strongly and his fund will have enjoyed a double benefit as he's avoided the weakness in Reckitt. I do not think he thought it had fundamentally turned into a bad company, but I can't put my hands on the source.