Diageo plc (ADR) (DEO)

I decided to create a portfolio with only products or services that I use without regard to price/value in order to compare with my own personal port

talking frog told me so

international growth - expansion in India and china. good brand base. Nice P/e and PEG. Bright outlooks all round and people tend to leave the drink vice alone - less litigation than tobacco

At this price, vice will pay off.

yummy

Diageo (DEO) is a British company which produces beer, wine, and spirits. Their brands include Guinness, Johnny Walker, Captain Morgan, Gordon's, Tanqueray, Smirnoff, Hennessy, and a variety of particularly fine single malts including Caol Isla, Oban, Talisker, and Lagavulin. At 13 to 14 times trailing earnings, with a fairly consistent revenue stream and a 3.5% dividend yield, it would be an appealing business in any case. The relatively high level of debt is adequately serviced by earnings, while gross margins are in the neighborhood of 60%. But what makes the company so attractive to us at this price is the ability to use US dollars at their current purchasing power to buy future earnings in a variety of world currencies, which increasingly will derive from consumers in emerging markets.

We follow this company on our blog at the Three Dollar Hedge Fund: http://threedollarhedgefund.blogspot.com

people like their drinks.

God knows we could all use a few stiff drinks to numb the pain of this market. Defensive play - following the Otter. If we are not witnessing the end of the world as we know it (no guarantees there), companies like DEO should prove bargains when financial sanity returns.

Another well run company - currently an Income Investor choice. They make and distribute some of most popular spirits in the world such as Smirnoff Vodka, Guiness Beer. Also since it is based in U.K. it might get a boost from weakening Dollar.

Well managed company in a recession proof industry with a nice dividend.

The way the market has been moving these last few weeks will lead a lot of folks to this stock...

Part of the sin stocks....no slumps in the market; so all they have to do is perform

Alcohol will never die, and they've got some great brands.

Wide moat.

Best alcohol stock. Largest and most solid portfolio of brands.

We'll always spend $ on drinks especially if the economy gets worse. :)

Great products, great market share, international exposure, solid dividend, and trading below 52 week lows. PE and PEG are strong compared to the industry, and margins are very strong. Either the recession is coming and we drink away our sorrows, or the bulls run wild and the celebration begins.

Drawing stablity with Berk as a shareholder, the makers of Guiness, Diaego will see a terrific christmas. season. This is a 70 dollar stock going to 100 for a nice 30% plus gain.

This company will grow strongly in the next few years (at least). Great balance sheet, and strong management. Paul S. Walsh has added great guidance since he took over in 2000. He's concentrated DIAGEO by selling off their side interests in the food market, and having them focus solely on their quality drinks. Smart move - they've created a niche.