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No. of Recommendations: 8
That warmed my heart! As I was reading your post I thought Apple is a better value. And voila.

I could probably think of something else even better, but yeah.

My preferred way to evaluation a potential stock position is how many dollars you're paying today for each dollar of "pretty darned sure" real earnings per share on average 5-10 years from now.
That works for dead end cash cows as well as currently profitless high-growth zoomers.

Since I don't expect Coke's figure to rise materially, the figure is over 25.
Counting the "pretty darned sure" criterion, which means flat real EPS, it's over 30. Yuk.

Despite being at a cyclical high point, I think it's reasonable to posit that Apple's earnings per share could rise at least inflation+5%/year from here.
That would put their multiple measured the same way at about 20, which is cheaper.

I figure a good return can be had entering any stock position with that multiple at 12 or less, and a really good return at 10 or less.
So neither Coke nor Apple seems cheap, but I'd rather have the Apple.

The equivalent multiple for Dollar Tree might be in single digits right now.
That threshold would require their earnings per share to rise at least inflation+6.6%/year, which I think they will beat.
So I'd be "pretty darned sure" of a good outcome from here.

Jim
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