Good piece. This seems to be a sustained alpha theme, which is some what surprising as it’s widely understood. One possible explanation is it’s boring - buy good brands and hold, trade little. Another is that these companies consistently have conservative guidance, and analysts want to stay close to consensus ?
Good piece. This seems to be a sustained alpha theme, which is some what surprising as it’s widely understood. One possible explanation is it’s boring - buy good brands and hold, trade little. Another is that these companies consistently have conservative guidance, and analysts want to stay close to consensus ?
I think the boring part is the key. Investors and analysts alike love stories where there is some action. KO just doesn't provide that action in the news flow.
Good piece. This seems to be a sustained alpha theme, which is some what surprising as it’s widely understood. One possible explanation is it’s boring - buy good brands and hold, trade little. Another is that these companies consistently have conservative guidance, and analysts want to stay close to consensus ?
I think the boring part is the key. Investors and analysts alike love stories where there is some action. KO just doesn't provide that action in the news flow.