12% Annual Returns Through 2021

Diageo (DEO) is fast becoming my best idea for risk-adjusted returns over the medium term. Among non-cyclical business sectors, it seems that almost everywhere you look, you either have to pay towards the high end of fair value for a stock, overpay a little bit, or take on a corporation that is trading at a favorable valuation because it is working through some problems. There is absolutely a place in a portfolio for that third category, but there is also a place in a portfolio for those corporations that roll along nicely, growing earnings, selling products that drown the shareholders in cash, and create dividend streams that are almost certain to rise over every rolling five year period.

That’s why I like Diageo so much right now. The stock price of $107 per share seems like a very good deal for shareholders that have a generational holding mindset (I classify … Read the rest of this article!