The stock market rally may be over, but I’d buy shares in this FTSE 100 winner!

When I joined this site as a staff writer in January 2003, I discovered that Fools held monthly social meetings at a nearby pub. Keen to discuss my favourite FTSE 100 shares, I started attending these events.

At one meeting in early 2003, I had a profound, almost life-changing, experience. I met a distinguished American gentlemen – immaculately dressed, with impeccable manners and a delightful Southern drawl. This gentlemen taught me a crucial lesson about building wealth long-term by buying quality stocks.

He explained that, just as he finished college, his father died. In his estate, father left son a stock portfolio worth perhaps $20,000 (in the late 50s or so). This sum was invested in “big, boring, blue-chip stocks”, according to the distinguished gentlemen.

Throughout his life, investment advisers had urged this charming character to sell his solid, old-school shares and buy into the next big thing. He ignored them, stuck with his established portfolio and kept adding these same stocks.

Finishing with a flourish and a loud laugh, the gentlemen roared at me: “And you know how much those boring S&P 500 shares are worth today, Cliff? EIGHT MILLION DOLLARS!”

Unilever: A FTSE 100 winner for decades

When I scan the FTSE 100 looking for attractive businesses for portfolios, one name keeps coming up. This company’s shares aren’t insanely cheap, they don’t pay a double-digit dividend, and they don’t take giant leaps in value.

All the same, I’d happily buy shares in Unilever (LSE: ULVR) at almost any price, largely because it ticks all my boxes as a continuing FTSE 100 success story. For example:

1. As a £113bn powerhouse, Unilever is one of the largest listed companies in the FTSE 100 and in Europe.
2. It’s run by an outstanding Anglo-Dutch management team that thinks long term and acts accordingly, just as FTSE 100 managers should.
3. It has an unrivalled array of popular, best-selling brands in food and drink, home care, and personal care. It’s highly likely that your kitchen and bathroom cupboards contain Unilever products.
4. Unilever has an impeccable pedigree, with a history dating back to September 1929 (just before the Great Depression hit).
5. It has a rock-solid balance sheet and a strong cash/liquidity position to ride out further Covid-19 waves and emerge victorious.

A wonderful FTSE 100 company at a fair price

Billionaire investing legend Warren Buffett argues that, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”.

For me, Unilever fits the bill 100% at the current share price of 4,358p, and is a FTSE 100 favourite of mine. The firm’s yearly cash dividend of 143.44p per share was covered 1.33 times by earnings per share of 191p. The current dividend yield is a decent 3.3% and these shares trade at 22.8 times earnings.

In summary, Unilever shares may appear expensive but, for me, this is definitely a fair price to buy into a wonderful FTSE 100 company.