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OK, well they say Coca-Cola is at historically high valuations. Actually many say that Coke's act never-before-seen valuations. But it ought be remembered that Coke has never before been the company that it is today. With $18.5 billion in sales and profit margins above 20% and climbing. . . looking back to establish reasonable price ranges doesn't really work.

I'm not going to propose that Coke can't fall below $50. It can. But given it's near century of 16.6% compounded growth, that 16% drop from its highs 'round $60 isn't terribly large for long-term holders. Unless you need the cash, this is a great place to have your money - particularly if you're worried about a market downturn, but even if you're not!

Tom Gardner, Fool
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