Jim - regarding BRKA's incredible performance, I want to run some figures by you (from Newsweek 10/27/97, in an article on Coca Cola and the late Roberto Goizueta) (and, the point they were trying to make (if any) was clearly NOT the point I will be trying to make)
KO 1981 sales $5.889 billion
KO 1997 sales $18.868 billion
(the Newsweek article had an earlier revenue number than the year end 1997 number I just used, but since Coca Cola has almost no growth, you know it will be close to 18.868). (It was 18.546 in the article).
KO 1981 market cap.... $4.4 billion
KO 7/20/98 market cap. $208.8 billion
If you give me HUGE cash flow to invest in stocks, and let me buy heavily in a stock at roughly 1 times sales (a certain San Diego based firm comes to mind), and THEN manage to somehow convince the rest of the world that this company growing just barely faster than the inflation rate (or, faster, I certainly hope, in the case of Qualcomm) should now be valued at 11 times sales, then I will also have an excellent rate of return to show you.
My biggest question is - who is helping to manage W.B.'s public image (I guess, his persona) to cause numerous biographies to be written on him, and people to bid up stocks like KO and G?
Anyway, regarding buying companies at 1 times sales (based in San Diego), just imagine how well we all should do (in theory), vs. KO shareholders, since QCOM is growing so much faster. (I personally think KO should be apologetic about their results).
Jon. |
