Just sold my position in $PG (-0,26%) at 129,86€, bought back in February 2023 at 130,2€, when I was just starting my investing journey. The stock had a strong 2024 performance (around +30%), but the USD underperformance vs EUR combined with sluggish growth have completely erased those gains for me.
At this point, I don’t see good reasons to keep it in my portfolio:
- Valuation is still not cheap for a defensive consumer staple.
- Dividend growth is modest compared to other opportunities.
- High (and rising) US inflation could continue to pressure margins and net profit.
- Limited upside: PG is a great company, but future returns look capped given the current macro backdrop.
In short, it no longer fits my investment criteria.
At the same time, I’m rotating that capital into names I find more attractive:
🔹 $SIE (-0,19%) (Siemens) – I like the current valuation and long-term growth prospects, especially in automation, digital industries, and energy transition. Solid balance sheet and global diversification make me confident to increase my position.
🔹 $IBE (+1,01%) (Iberdrola) – Excellent track record and very aggressive investments in renewables in the UK and USA. A growth company in a defensive sector, with consistent dividends and a clear long-term vision for energy transition.
🔹 $PUIG (+0,94%) (Puig) – Since their IPO, the price performance has been disappointing. The stock rerated from a P/E above 20 to below 17, despite expected annual growth >7% and strong positioning in the luxury and beauty segment. Short-term headwinds (like US tariffs, their biggest market) are real, but I see the current valuation as unjustified. Strong brands, pricing power, and global exposure make me believe there’s solid room for price appreciation.
Overall, I’m shifting from a defensive, low-growth stock into names with better growth visibility, reasonable valuations, and stronger long-term compounding potential.