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Value After Hours S04 E33: Equity Duration & Inflation, The Nifty Fifty, and Vermeer Fakes

The Acquirers Podcast

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I Think Buffet Paid Like 22 Times for Coke

He concludes that at 25 times that stock was fairly valued because it then went on to deliver a market return. If it had been a PE 35, that would have been 5% per year and so overvalued. Then he takes... Then he looks at two specific examples. Costco from 2002 to 2015 had a PE of 15 and it delivered 15 to 20% returns through that whole period. And fair value for Costco would have been a PE 40 and at that 40 would have delivered only 9% a year. He gives the example of Coke too. So Coke in 1972 had aPE of 46 and it still went on to delivering 16.2% compound through that period. I think buffet paid

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