Since all eyes are focused on Palm Beach (PB), I'll just assume, as is my wont, that that PB is just where investors should not be looking. It's to a totally different PB. -g-.
I'm adding to my position today in Panamerican Beverages (PB). PB's a tough company (for me, anyway) to figure: it's foreign (although they report in GAAP), it doesn't trade on earnings (Management would have you look at growth in "Cash Operating Profits"), and because it's an "anchor" bottler for Coca-Cola Co. that also suggests it's subject to pricing pressures (syrup costs) put on it by that company.
If one considered KO as a Buffett-type company, then imo, one ought to consider PB. PB has a good history of revenue increases, and the potential to grow its business along with the growth in Latin American population and perhaps also to increase the per capita consumption of Coca-Cola products. Of course, PB is limited in its geography compared to the powerful KO, and PB is a bottler, so imo, it's on the receiving end of KO and nowhere near as powerful as KO, but still--- looking out 10 or 15 years (or more, ala Mr. Buffett) -- one could reasonably assume that PB would be in existence with a viable (growing) business. And that even with competition, PB could have, if not a moat, at least those strong brands with some strong barriers to competition.
With the price of PB at a multi year low now, I suggest PB as a Buffett-type stock for consideration.
Paul Senior |
