Pepsi is the biggest steal in the S&P500 right now. Almost totally immune to economic forces such as Asia, and with two of the dominant brand names in the U.S. in Pepsi and Frito Lay. Regardless of that fact, I know there are some things more important to WEB than money, and one of them is the trust and respect of Doug Ivester and the rest of the people at Coke. Buying Pepsi is out of the question for WEB in my humble opinion. He has said many times that he'll pass up a good deal if he doesn't feel right about it, even if there is easy money to be made. This fits into that category.
Could you post your analysis of Pepsi. I am interested to know why you think it's a steal. I am not disagreeing as I know very little about PEP. Just curios as to what others emphasize when evaluating companies.
I think it's a steal because interest rates are 5.6% and show no signs of rising anytime soon, Pepsi is second in what is basically a duopoly industry, and Frito Lay is one of the most dominant companies in the U.S. Potato prices in Florida have skyrocketed lately and since Pepsi gets a lot of its potatoes from Florida (?) its price is down. Buying when a stock is down due to bad weather is usually a good way to make money.
On the negative side, the company is putting less emphasis on the baby boomers and more on "generation next" (14-22 year olds), a segment of the U.S. market which is shrinking relative to that of people over 40. I hope for their sake they don't continue to do this much longer.