I have referred to "noise" in several of my posts.... and what I mean by that is if you watch CNBC every day -- you get bombarded by various expert opinions. One says this is going to the moon - the next guy says the world is coming to an end. THAT is what makes a "market" - one guy is selling - the other, buying.
If you listened to this "noise" - you'd soon go crazy. Like most "opinions" there is some fact... some information that is worth consideration. But if you acted on this "noise" you'd be in and out of stocks about every 15 seconds. This is why I urge you to AVOID the noise.... listen - learn - think - but don't react. Many of the facts on these shows are for TRADERS and professionals that are trying to milk every last drop of "return" on their money. If the average guy listens and reacts - my guess is - you'd be flat broke in less than 6 months.
With this in mind - The reason for todays post (I'm a bonafide posting whore) I read this article on Seeking Alpha. If you only read the part on Coca Cola and McDonalds.... it will sum up the "noise" I refer to.
http://seekingalpha.com/article/4385...g_income&ifp=0
So here's my take away on articles like this....
There is ZERO supporting numbers to stake the authors "buy" recommendation on Coke... other than it's a nice company with good dividend and is a solid business. Remember that this is an INTERNATIONAL play - in the food biz. Now let's go to his "I wouldn't touch this with a 10 foot pole" argument for McDonalds... All manor of numbers - pointing to food costs rising - G&A (general and administrative costs) expense rising... Europe declining etc.
REALLY?? So none of those above factors affect Coke? Only McDonalds.... Both international companies in the food biz. One is a buy the other a sell.
I read this stuff... but I don't put much stock (pun) into the authors argument. I hold a bunch of both and wouldn't sell them even if we slipped into a depression. This guy is just the very definition of the noise I refer to.
