Peculiar circumstances arise from time to time in different forms in the wonderful world of investing. Stranger still, the crowd somehow comes to accept them as normal events. I remember well the madness in markets at the end of the last century when stocks traded at what I believe were the most expensive prices ever. Dot-com companies (most that don’t exist today) traded at prices that defied any rational thinking. The end result of this lunacy was collapse. Even Coca-Cola, a truly wonderful business, was trading at something near 50 times earnings around the turn of the century. If you bought the stock at its peak in 1998, you have endured the pain of watching it go nowhere. Since then, the total return from KO has been completely derived from the increasing dividend and yield, with no capital gains. Now, I’m a long-term investor, but an 18-year wait seems a bit excessive. Overpaying and waiting decades is not a rewarding strategy.
September 8, 2016 Howard Marks to Keynote Latticework 2016 in New York City Next Week Read More
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