PREFACE

First, my goofs. I failed to sell my Coca-Cola Company shares when they spiked past $80 in 1998. That price suggested that every man, woman, and child on earth had just pledged to drink a bathtub full of soda a week for life. And I knew that that hadn’t happened.

Worse was Nike. I started selling it at $67 per share in 2010, concerned that its price-to-book ratio had swelled past three. But I knew that the treasured swoosh logo was carried on the company’s balance sheet at precisely zero. Nike’s earnings and stock price have both soared since then.

Lest my blunders be limited to consumer goods, in 2011 I passed on pipe manufacturer Mueller Industries. Its stock price had dipped following a drop in housing starts, a cyclical condition ...

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