Yes I have to agree that on paper it sure does look like a company worth investing in and has done for a long while…BUT… whilst your analysis is sound and will certainly strike a chord with many investors Nike’s not for me.
OK - I’m probably going to make myself pretty unpopular here but I struck Nike off my investment ‘wish list’ quite a few years back.
Why? Well, in simple terms, I try (and the emphasis is on TRY!) to run a 100% ethical investment programme for, not just myself but also, a handful of other wealthy interested parties. It’s not an easy task and getting more difficult by the day - proper diligence is time-consuming and costly, but we have an agreement that I will delve deeper to the best of my ability and look at much more than just plain market values and profitability.
So I still have great concerns over Nike’s supply chain transparency, especially as it was only after sustained international pressure (more than two years!) and following numerous major ‘failings’ that they reluctantly allowed inspections of their overseas factory.
So sure, they may offer great dividends, and even great footwear, but at what cost. For me they remain tainted… and… there are many other options for investment out there.
That is the beauty of the market - we all have our choices to make, and it would be dull as ditch water if we all agreed!