Just my 2 cents worth. Large companies with steady, predictable earnings are rewarded with larger PE's, at least in the consumer sector, just look it up. PE 5-year avg. return Proctor & Gamble(PG) 33.16 30.7% Gillette(G) 47.44 36.9% Colgate Palmolive(CL) 38.24 29.2% SP 500 20 Approx 18.3
In addition to this track record these are companies that
usually make there earnings, rarely more than a cent or two above or below estimates. It just seems to me that people are willing to pay a premium for peace of mind. While there are obvisouly no gauranties in the stock market companies that have been around for decades and sell products that people use everyday seems to be a pretty safe place to invest your money. As for Walgreens, I have worked for this company for 13 years, have been accumulating the stock for the last 9 years and it paid off very nicely for me. Just remember, think long-term.