KO - Coca-Cola Company

[ERICOPOLY]

The 10 yr Treasury yield was 8% - 9% too.

[Cigarbutt]

KO is not a cigar-butt stock and it has always been "expensive". I guess the idea was to pick it up when it was the least expensive in comparison to its long term prospects.

The entry point was magnificent (with a PE around 15, see below link page 10 for numbers and Mr. Hagstrom's book does a good job at market perspective of KO's purchases in the late 80s).

I wonder if he ever regretted not selling KO in the late 1990s.

If the market price movement remains horizontal for long enough, it may become a bargain again, at some point.

I would say superior forward returns (KO is so big) would happen if KO could reduce its share base (Singleton-like) and if the market cooperates.

In today's world, the discount rate is much lower but so are the "growth" prospects.

 

https://www.comgest.com/export/sites/default/data/en_data/media/images/WP6_2014-09_LT_Growth_Connundrum_EV_EN.pdf

https://www.fool.com/investing/2016/09/30/coca-cola-stock-history-what-you-need-to-know.aspx

 

For those interested and unaware, fellow member racemize has produced a price value paper, with KO as a source of inspiration.

[Jurgis]

Those numbers look way off. I used to have the 1986-1989 annual reports for KO and based on what i saw the pe was way lower than what's in here.

 

I believe 198X ARs or financial data are still available either through KO website or through SEC.