Added to Watch List: Diageo (DEO)
There is indiscriminate selling in the markets right now so solid, brand-name, companies are starting to be attractive. Companies that I felt were expensive are actually reasonably valued right now. I am personally starting to concentrate on higher quality companies and moving away from the distressed, low quality, companies. Such a shift amounts to moving the modern Warren Buffett strategy of paying fair price for a good business (as opposed to paying a low price for an uncertain business.) One company that I initially researched 2 or 3 years ago but felt was too expensive was Diageo (DEO). Diageo, a British company, is the largest spirits--hard liquor for those not familiar--company in the world. It owns many of the premier brands such as Smirnoff, Guiness, and Johnny Walker. The alcohol industry consists of 3 segments: beer, wine, and spirits. The wine industry is heavily fragmented, and the beer industry is somewhat localized. The spirits industry is concentrated with Diageo domina...