In the most recent article that I published on Patron, I covered the stock that I believe is the most likely to be the Coca-Cola of the next generation. When I describe something as the next Coca-Cola, I mean a company that shares the attributes that made Coca-Cola such a magnificent investment over the past several decades and stands the highest probability of delivering returns reminiscent of what Coca-Cola achieved during the 1980s and 1990s.
Here is something I recently learned while reading Wal-Mart’s financial statements that I thought I would share with you: Over ¾ of Wal-Mart’s inventory gets sold before The Wal-Mart Corporation even has to pay for it. Three-quarters. 75%. Wal-Mart’s profit conversion cycle is one of the most crazily impressive business statistics I have ever seen in my life.
Is it any surprise that the company has grown cash flow per share every year for the past seventeen years, from $0.99 per share in 1996 to $7.50 in 2012?
Is it any surprise that the company has increased earnings per share in each of the past seventeen years, from $0.67 per share in 1996 to $4.93 in 2012?
Is it any surprise that the company raised its annual dividend from $0.11 per share in 1996 to $1.59 today?
(Note: I only reviewed data going to back to 1996—i.e. the starting point … Read the rest of this article!