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  • AynRand23 AynRand23 Aug 12, 1998 12:02 PM Flag

    Buffett buying Pepsi?

    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.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • AynRand23,

      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.

      Thanks in advance.

      • 1 Reply to saltmakr
      • 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.

    • WEB is a Coke board member. There is no way he would look twice at Pepsi. These two companies hate each other. Forget about it.

 
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