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Consumer Monopoly If you buy a bottle of imported wine in a restaurant, the chances are good that it was imported by Seagram. The company produces and markets some 225 brands of distilled spirits and some 210 brands of wines and champagnes all with brand names. It also is a leading producer of branded fruit juices and owns Tropicana Products. Think of it as an adult beverage company. It owns an 80% interest in the entertainment company MCA. Value Line and S&P follow it and you can get an annual report by phoning 514-849-5271. SUNTRUST BANKS Owner of a Big Chunk of Coca-Cola Warren likes this stock, and I suspect it is because it owns several billion dollars' worth of Coca-Cola stock, which it carries on its balance sheet at its initial cost of $110 million. It also earns above-average returns on equity. S&P follows it, and you can get an annual report by calling 404-588-7711. THOMSON CORP. Toll Bridge Thomson Corp. is in the business of publishing, which includes newspapers. The numbers for this company don't look really good currently, because of the recession in advertising that hurt all the newspaper companies. Just look at the figures for the New York Times. Value Line covers it, and if you want an annual report you can call 416-360-8700. TIFFANY & CO. Consumer Monopoly Tiffany is a jewelry store the jewelry store! It has a consumer monopoly. It has the capacity to earn high returns on equity and recessions offer us a great opportunity to buy in. Face it. It was the class act thirty years ago and it still is. S&P follows it, and an annual report can be yours by calling 212-755-8000. TIMES MIRROR Consumer Monopoly and Toll Bridge This the newspaper company that owns the Los Angeles Times. The advertising recession hurt it, but it is capable of earning high return on equity. Value Line and S&P follow it, and you can get an annual report by calling 213-237-3700. TORCHMARK CORP. Toll Bridge This is an insurance and financial services company. It consistently earns a return on equity in excess of 19%. Its per share earnings have been growing at an annual rate of 10.9% for the last ten years. Over the last couple of years there have been occasions to buy it at an attractive price. Value Line and S&P follow it, and you can get an annual report by calling 205-325-4200. UST INC. Consumer Monopoly It makes smokeless tobacco and it makes a ton of money. Value Line covers it, and you can get an annual report by calling 203-661-1100. WAL-MART STORES Toll bridge Wal-Mart can outbuy the competition, which means it can give its customers a better buy on just about anything. Thus, everybody shops there. More shoppers mean more volume, which means more money. How much money? Wal-Mart's annual return on equity for the last ten years has always been over 20%. Its per share earnings have been growing at an annual rate of 24%. It is, after all, the world's largest retailer. Value Line follows it, and if you call 501-273-4000 they will send you an annual report. WARNER-LAMBERT COMPANY Consumer Monopoly This is a pharmaceutical, consumer health care, and gums and mints company. It has such brand name products as Listerine, Bromo-Seltzer, Halls cough tablets, Rolaids antacid, Schick, and Wilkinson Sword razors and blades. Its gums and mints division owns Dentyne, Trident, Freshen-up, Bubblicious, Mondo, Cinn-a-Burst, Clorets, and Certs. The return on equity is consistently above 30%, and per share earnings have been growing at an annual rate of 11% for the last ten years. Value Line and S&P follow it, and you can get an annual report by calling 201-540-2000. WASHINGTON POST Consumer Monopoly and Toll Bridge The Washington Post includes the newspaper, Newsweek magazine, six TV stations, and fifty-three cable TV systems in fifteen states. Warren has owned this company for a long time. Value Line and S&P follow it, and you can call 202-334-6000 for an annual report. WELLS FARGO Toll Bridge Warren loves this bank. He bought at a cheap price, $63 a share, and it has since traded at over $250 a share. It may never be cheap again. But if it is, you could be there waiting.

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23-Oct-10

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