(01-10-2016, 02:50 PM)Kerim Wrote: Sure, we all make regular, recurring purchases of clothes, but not always from the same brands / stores / companies. I'm much more loyal to Snickers than to the Gap!
Maybe it is just me, but my family always buys the same brand of jeans, shoes, underwear, socks, etc.
(01-10-2016, 03:11 PM)Dividendsrule Wrote: Come on now....Soda is so old hat for KO, do you buy Simply juice? Zico? Vitamin water? Pike's Peak Tea? Minute Maid?
I drink smoothies and water. I make the smoothies myself with fresh food, and the water I get from the tap.
I agree that KO and PEP are fine companies that have recurring purchases from many people and are more than just soda. I hope to own them both someday. However, people don't need the majority of products they make, they choose to purchase them, and that is my definition of discretionary spending. Ultimately, the only thing that matters is the company itself and its ability to pay dividends in the future, not some arbitrary sector classification. I combine both Staple/Discretionary when determining portfolio allocation/diversity for these reasons.