Buffet and Munger have cited Wrigley several times as the type of company they admire. But I don't believe they have ever actually bought any WWY shares. Paraphrasing Munger at a recent Berkshire annual meeting: Wrigley is a great company BUT everyone knows it. Therefore it is very difficult to purchase the shares at a discount to its inherent value. My own personal valuation estimates over the last five years tell me that WWY normally trades at about a 30% premium over inherent value ( based on discounted free cash flow). The current inherent value according to my estimates is about $70/sh. So WWY is about as close to fair value as it gets right now. I think the earlier comments in this board about growth in Asia are right on the mark. There are billions of people WWY has not yet reached. And a lot of them still smoke, which I believe is one of the drivers of gum consumption ( trying to give up cigs that is ). So WWY growth rates stand a good chance of improving. And remember, WWY stands alone as the clear leader in chewing gum worldwide. Even Coke has Pepsi to contend with. McDonalds has Burger King. But Wrigley is one of the, if not THE most dominant brand name around. Bottom Line - WWY represents a good buy now but a long term dollar cost average program with a WWY DRIP will also be very rewarding over the next twenty years.
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