Thursday, January 08, 1998
The Wisdom of Wall
Street
by Wingzing
([email protected])
I could only laugh Foolishly when I read a report on Coca-Cola in our local newspaper last month. At the time, Coke was about $66 a share. The following is a paraphrase of a securities analyst's comments. I will graciously let him remain anonymous.
When KO fell below $54, we had to downgrade our recommendation to a "sell." When it climbed back over $64, producing a "breakout," we had to upgrade it to a "hold." We will not issue a "buy" recommendation until it hits $74, which will be the next "breakout" point.
Somehow, I don't get it. This sounds like the strategy my brother-in-law, the airline pilot, used. When asked what he did with all his money, he always answered, "That's easy. I just keep on investing it until it's all gone." I much prefer the Warren Buffett approach to Coke valuation taught by TMF Sheard in the Workshop Report of December 8, 1997.
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