Four years ago while brushing my teeth with Colgate, I decided to invest in it. I am using Colgate for more than three decades now, so the company should survive at least few more years. And here we are four years later, Colgate is still there and so is the money that I invested in it. Are the returns great? No. Are the returns good? Still No. Are the return average? Sadly, yes. But hey, it could be worse considering the research that I did here.
Returns and Profit
Over these four years I invested 8 times in Colgate. The returns across these four years have largely been positive except during the COVID-19 pandemic market crash. But since last couple of months the share price has tumbled erasing a good chunk of my (unrealised) profits.
On the other hand, 1%+ dividend yield at cost is much better than the dividends that is given by other companies.
Profit Percent
XIRR
XIRR across these four years has been around 15% and I was happy with that. It was during the last 3 months that the share price price has tumbled putting my XIRR at 5%.
NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.