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Subject:  Re: Individual Stock vs. Individual Bond perform Date:  6/16/2011  4:18 PM
Author:  LONGREITS Number:  32952 of 37017

For that very reason, many people would think MSFT is a horrible investment and not touch it. For the same reasons it might have been overvalued 10 years ago, it could be undervalued today. Same thing with KO. Told a family member KO is a decent investment at today's price and they said it hadn't gone anywhere in 10 years, and I told them, that's why it's priced reasonably (it grew into the valuation)!

Yacktman would have given you 3-3.5x your money over the past 10. I'd bet he does it again.

PG at 8% FCF yield + 5-7% cash flow growth.
KO at 5.5% FCF yield + 5% cash flow growth.
PEP priced a little more attractively than KO.

I can't analyze all his holdings, but the few that I own (above), all conceptually track what he has done the last 10 years. Of course this assumes multiples don't expand or contract violently.

To the above you could add WMT, BRK.B, maybe MCD, maybe WFC and USB, PM, KFT, NSRGY.

I don't think it's going to be difficult to to get to 10%+ 10 year returns from here if multiples stay constant. Either way, the intrinsic value of these businesses will grow.
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