02-21-2014, 12:16 AM
(02-20-2014, 05:20 PM)hendi_alex Wrote: That disagreement is what makes a market!
Ten year total return is not overly impressive to me.
KO traded at a PE of around 33 at the beginning of 2004, which is roughly 50% higher than its typical PE and yielded just 2%. So even by overpaying by 50% you were still able to beat the market's returns over the last decade.
Now its trading below at a 20 PE and yielding nearly 3.3%.
Long KO.