Avery Dennison – a sound company does not mean a good investment

I differentiate between a good company and a good investment. A good company is one that is fundamentally sound. A good investment is one that can enable you to make money.

A sound company may not be a good investment if it is overpriced. A good example of this is NYSE Avery Dennison.

I rated it as fundamentally strond based on a number of criteria - eg 5% organic growth, improving net margin, ROE trending up, and good capital allocation.