(06-24-2015, 11:13 AM)EricL Wrote:(06-23-2015, 05:41 PM)Dash Wrote: And call me a traitor to DGI, but I just don't see the next 50 years of Coke and Pepsi being what they previous 50 years have been. Soda/fake foods/transfats are the new tobacco. They will continue to exist and likely grow overseas but in the US the tide has turned, and I just don't love companies whose future growth is more dependent on foreign countries that I don't really understand. So paying over 20 times earnings for KO or PEP is not something I'm willing to do. If that means I never get them, I'm ok with that.
Coke is so much more than soda. They have 20 brands with over $1B in sales and are continuing to grow into other beverages besides soda.
Oh no denying that Coke is so much more than soda. But their flagship product, the driving force for those amazing years, is not going to carry them in that same way going forward. And while I absolutely think they will continue to be a solid company going forward, I'm less comfortable buying them at anything more than a discount.
They are venturing out into other brands, but it is IMO speculative to assume Zico and Powerade will carry them the way Coke and Sprite did. It reminds me of E-cigarettes versus smokable tobacco.