Investing 102

[toy71camaro]

I guess... to somewhat answer my own question...

Perhaps Coke would be "better buy"... for those handful of years, we got our dividends still, and were purchasing shares at a discount. Eventually it "came back up", and now we have more shares when it came around = more money in our account.

then, the next question to answer (myself, not meaning you guys)... is to try and guess which one is going to be the "better guy" the next 10, 20 years.

Both being fairly solid in the past (PEP being a bit more "stable", but, stable can also = less shares = less money), they'll probably end up nearly the same in the end. hah.

[GregWeld]

Originally Posted by toy71camaro

I guess... to somewhat answer my own question...

Perhaps Coke would be "better buy"... for those handful of years, we got our dividends still, and were purchasing shares at a discount. Eventually it "came back up", and now we have more shares when it came around = more money in our account.

then, the next question to answer (myself, not meaning you guys)... is to try and guess which one is going to be the "better guy" the next 10, 20 years.

Both being fairly solid in the past (PEP being a bit more "stable", but, stable can also = less shares = less money), they'll probably end up nearly the same in the end. hah.

These kinds of questions are the constant struggle in "investing".... and they really have no answer because nobody has the crystal ball. We can study numbers 'til our brains run out our ears... but that is all in the past.

SO -- I've said it here before. When it comes down to this... PICK THE ONE YOU LIKE. Do ya drink Coke or Pepsi? Choose one. If you have the dough - put some in BOTH. Cause you're not going to be far off the mark with either one IMHO.

Remember that we can manipulate numbers in any way we want... which period of time... EBITDA... P/E.... and blah blah blah. The important lessons of Investing 102 are -- DO SOMETHING... and if that something includes some basic research -- which you just did (and showed it here)... then the final "right answer" is to pick the stock that YOU want to own and feel good about.

[GregWeld]

Personally I own 3000 shares of Coke (KO).... I don't drink either brand - I'm a coffee freak. LOL

When I looked at all the numbers - I just like the Coke brand. No right or wrong choice here. And basically what you're buying here is a steady eddy.

[CRCRFT78]

Just my take on the KO vs. PEP debate. I ended up going with Pepsi but I also plan to invest in Coke. Although the numbers are comparable and close I liked the fact that Pepsi also has a hand in the snack food business. Most people will buy a snack to go with their soda when they are on the go. Hopefully that snack company is owned by Pepsi when doing so. I felt that was just another aspect of their business model that could possibly help the stock when soda sales sit idle. I worked in the beverage industry for 8 years and remembered what it was like when I saw salesman supplement their lack of soda sales with other company owned products.

Right or wrong, it got me to think outside the box and look at Pepsi as more than a soda company and consider what may or may not help the business during down times. Not to say that Coke couldn't do the same, it was just another factor to consider along with all the charts.

[toy71camaro]

Awesome guys.. Thanks for the tips..

I know there wasnt necessarily a "right or wrong" answer.. thats not really what i was aiming for...

I was more trying to just compare apples to apples, and see what other "strategies" people might come up with to base their purchases on... Greg pointed out one "buy what you like" (and yes, i didnt put it, but I'm a PEP drinker when i do drink soda, so i would of likely went that way regardless)... but i also wanted to see any other ideas... Such as CRCRFT78 mentioned, thiking "outside" the box, and that PEP is also involved in more things than just "soda". Thanks for pointing that out, I didnt think to consider that.

Another mental note for me.. aside from the "bulk of the business, consider what "else" they "do" that could supplement their business". perhaps thats why PEP didnt have the large dip that coke had. Soda may have slowed, but snacks may have picked up, and vice versa.

I love "thinking out loud" like this.. sorry if i seem to babble a lot. LOL

[GregWeld]

Well -- You guys got me digging around and I see a couple of things... and this is just open mike time -- not a "you should buy X because". This ain't how 102 should work -- it's about thinking and digging for info and doing the "work" so this is a perfect discussion.

When I OVERLAY PEP on KO chart -- they trade "share price wise" in near lockstep....

The 5 year SHARE growth is KO - 47% and PEP at DOWN 3%

10 year KO - up 44% PEP up 22%

That is SHARE PRICE not total return.

KO TOTAL RETURN --- 1 yr 12.4% 3 yr 87.7% 5 yr 73.3%


PEP TOTAL RETURN --- 1 yr 3.6% 3 yr 34.3% 5 yr 12.6%


Now -- I took my own advice and went back to look at all the info of why I chose Coke over Pepsi.... and this is exactly what this thread should be trying to do -- get people THINKING about all this stuff! I love it!!

[CRCRFT78]

I also thought to myself that I felt Pepsi had room for growth. Coke has the better looking chart over the various periods of time but I wondered if it reached a point where it may sit idle with a slower growth rate while Pepsi could possibly make a jump in growth. Will it happen? Who knows, but again, I was trying to think outside the box. Either way, I believe you can't go wrong investing in either of the two. Both will be around for the long haul and both will continue to be steady earners, its all a matter of choice.