1 Magnificent Stock That Turned $10,000 Into $1.4 Million

Core Insights - Procter & Gamble (PG) has a market cap of $371 billion and has shown significant long-term investment returns, with a$10,000 investment in 1984 growing to over 1.4 million today, highlighting the power of compounding [1] Group 1: Brand Strength and Market Position - Procter & Gamble has demonstrated steady growth, with revenue and diluted earnings per share (EPS) increasing at compound annual rates of 4.2% and 10% respectively from fiscal 2018 to fiscal 2023 [2] - The company maintains a dominant market share in key product categories, owning 24 brands that generate over 1 billion in annual sales each [2] - Consumer loyalty is strong due to brand recognition, leading to habitual purchasing and allowing the company to raise prices without losing market position [3] Group 2: Current Performance and Future Outlook - In the most recent fiscal quarter (Q2 2024), Procter & Gamble experienced a 1% dip in organic product volume, but a 3% increase in sales was driven by price hikes [4] - Management projects core EPS growth of 8% to 9% for the current fiscal year, indicating healthy growth despite a challenging macroeconomic environment [4] - The stock currently trades at a price-to-earnings ratio of 26.4, which is in line with its three-year average but represents a premium compared to the S&P 500, suggesting it may be somewhat expensive [4] Group 3: Investment Considerations - Procter & Gamble is viewed as a foundational stock due to its safety, consistency, and ability to generate substantial free cash flow, alongside a declining share count and a dividend yield of nearly 2.4% [5]