Diageo PLC (DEO)

Great global brand and tremendous diversification across the spirits business, both in terms of the number of products and the number of countries it sells to. Probably pretty expensive right now. Your dividend will grow over time and you will probably get your capital appreciation. For a long hold, in some ways, it is an ideal stock.

Near an all-time high. Very good company and growing well. Would like to see a little bit of a pull back from a valuation standpoint. Trading around 19X earnings. Normalized would probably be around 16X-17X. Well managed.

Sin stocks have performed very, very well. Has grown on the back of a distilled liquor business and doing a global roll up in emerging markets. Look for an earnings dip to pick some of the stock up.

They are the premium alcohol company. Low beta stock but with a 10% long-term growth outlook. Nice dividend yield of about 2.4% that should grow by 9%-10% over the next 3 years.

World’s biggest liquor company. Been a wonderful investment and he thinks it will continue doing well. The big growth for the company is in developing markets. Well-run company. PE ratio is 18.

Great company and a great industry. It has all the attributes he likes when investing in a company. Great cash flow and solid management. They understand their business very well. Have a lot of operating leverage. Strong enough balance sheet that they can do acquisitions.

Have fabulous brand names in liquor. Trades at about 15X earnings with a 3% yield. Payout ratio is about 50%. Had 5% organic growth this year. Great balance sheet. Should continue to do well. If you see a bad day on the stock market, that may be the time to Buy.

This has had phenomenal run. The thing that worries him is when will it come to an end. Global portfolio of distilled products. Driven by emerging markets. Demand is not going away. He likes it but is concerned about the run. At some point he will cut it in half.

(Market Call Minute.) The premium drinks manufacturer. Has leverage to international and emerging markets.