Comments on: The 2005 Reportcard http://www.canadiancapitalist.com/the-2005-reportcard/ Helping you invest and prosper Sat, 11 Feb 2012 19:27:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Toro http://www.canadiancapitalist.com/the-2005-reportcard/#comment-530 Toro Wed, 18 Jan 2006 19:02:59 +0000 http://www.canadiancapitalist.com/?p=316#comment-530 I wouldn't own BUD. Its growth rate is maybe 6% long-term, its going to grow 2% this year, maybe 3-5% next year, and its trading at 17x O6 numbers. That's too expensive, since you have a higher than market multiple for a lower than market growth rate. I know Buffett had bought it, but I don't understand why people overpay for these so-called bullet-proof consumer staples companies. I'd also be careful with HD. The real estate market is beginning to crack, and its hard to see that stock doing well if numbers have to come down. If numbers are fine, then at 14x 06 estimates, you probably won't lose a lot of money. I wouldn’t own BUD. Its growth rate is maybe 6% long-term, its going to grow 2% this year, maybe 3-5% next year, and its trading at 17x O6 numbers. That’s too expensive, since you have a higher than market multiple for a lower than market growth rate. I know Buffett had bought it, but I don’t understand why people overpay for these so-called bullet-proof consumer staples companies.

I’d also be careful with HD. The real estate market is beginning to crack, and its hard to see that stock doing well if numbers have to come down. If numbers are fine, then at 14x 06 estimates, you probably won’t lose a lot of money.

]]>