I’ve spent the last year snapping up shares after they were hit by bad news and, so far, I’ve done pretty well. However, not every one’s been a winner. Three have fallen further since I added them to my portfolio.
Do I still believe in them? I bought ( ) in November after it issued a profit warning following a sharp sales dip in its Latin American and Caribbean market. The global spirits giant has been pursuing a premium brand drinks policy but many cash-strapped customers are trading down to cheaper rivals. Buying cheap stocks I thought I was but Diageo shares have fallen another 10.
58% since I bought them. Over one year, they’re down 23.47%.
Diageo looks good value by its recent standards, trading at just 15.38 times earnings and yielding 3.18%.
Yet, so far, I’ve resisted the temptation to average down. I’m slightly worried by Gen Zs (isn’t everyone of my age?) A quarter of them have given up boozing. If this marks a generational shift, Diageo could take a long-term hit.
I bought ( ) in January after a profit warning wiped £1.8bn off its value in a day. I’d been wanting to buy this pacy growth stock for years, and it looked like I could finally buy at a cut-price valuation.
but mild weather and heavy discounting hit pre-Christmas sales at the group, which is best known for shifting trainers and sportswear, but also owns Go Outdoors, Blacks and Millets. The big attraction is that JD has lucrative deals with global brands and , but the latter’s going throug.
