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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: JF Quinnelly who wrote (6977)7/20/1999 7:04:00 AM
From: w0z   of 15132
 
What occurs to me is that his type of stock usually has a much lower p/e than techs

No wonder he's nervous! Has he looked at Coke lately? Here's their last 6 years of revenue and P/E ratios (all data from wsrn.com

Revenue($M) 18813.0 18868.0 18546.0 18018.0 16172.0 13957.0
P/E 47.2 40.7 38.1 31.7 26.3 26.9 (sorry...SI's spacing format!)

With a compound growth of just 6% since 1993 (actually flat the past 4 years) it must be hard for Buffet to justify KO being a value stock at a P/E of 49.4 (based on latest price and last 12 months' earnings.) And I'm nervous because HWP is at a P/E of 38!!?
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