
International, Inc. of 7.89%, in International Flavors & Fragrances of 10.40%, and
in Johnson & Johnson 10.18%. Among these top picks, only McDonald’s subse-
quent performance justified its superior 1972 P/E ratio. Within the Nifty 50, long-
term performance by drug and consumer products giants tended to vastly exceed
market returns for technology companies, which lagged badly. Over the 1972–93
period, highly touted technology giants like Burroughs, Polaroid, Xerox, IBM,
Eastman Kodak, Digital Equipment, and Texas Instruments notably underper-
formed Nifty 50 contemporaries and the overall market. According to Siegel, given
20/20 hindsight, only 16 (32%) ...