1972-2012

Since 1973, the four companies in the table have traded at an average premium of 51% to U.S. stocks. Today, the premium is just 22%. 

This is a historically tiny "spread" over the regular names. I expect this spread will widen again – and that someone will make a lot of money when it does. 


Now is a time to buy the expensive stock. Now is a time to buy the "Cokes" of the world. 


1972 P/E 2012 
 Coke 
 46.4 19.5 
Johnson & Johnson 
57.1 13.3 
Disney 
71.2 17.3 
McDonald's 
71.0 16.5