TheMotorcycleBoy wrote:The reason I ask is purely down to a potential shrinkage of their total business, which without replacement with other BUs, would *possibly* equate to shrinkage of revenue/income streams.
Since I'm very much in the building stage of mine (and Mels) portfolios, we really want to focus on firms that grow. Spinning off units clearly is not that.
Matt
I take your point Matt but a company like Unilever is always adjusting its portfolio. Not so long ago it sold its spreads business. Then last year they bought the Horlicks business in India (Where that is going given the situation in India goodness knows) so they are always adjusting their portfolio as tastes change.
The tea business is as far as I know the only business they have said they want to dispose of one way or another, but they have held it for many years and have no doubt done well out of it. They are always doing that sort of thing. Does your investment portfolio stay the same from one year to the next? It may for a year or two but will change from time to time. Look at Tate and Lyle. They said recently that their entire portfolio has changed in the last ten years or so. Just because they sell something does not mean that it is a dud or that it was a bad idea to have bought it in the first place.
Don't overthink things!
Dod