The main characteristic of buy and hold companies is consistency in earnings… And this consistency in earnings has to be seen on an annual basis. Since the FMCG companies have products that demand regular usage and do not pinch the buyer’s pockets too much, they have some element of pricing power. These type of companies too will be hit off and on due to raw material costs and demand elasticity, but overall the picture remains that of consistency.
There will be other companies that fall into these slots, but the first companies that come to mind for buy and hold kind of portfolio are these.
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