Subject: Re: OT: Nestle (NSRGY)
What is the attraction of Nestle? Stock price has been flat for 5 years, and for good reason - sales have barely increased at all.

Don't ask me, I can't figure it out.

It has traditionally traded for nosebleed prices in relation to earnings, and now the share price has come down a lot so that it is just trading at prices that seem expensive (21 times earnings) but not outrageously so. I suppose the investment case is that it might go back to its usual nosebleed prices, but I can't see any better reason. Berkshire already owns one of these non-growing highly processed food giants (Kraft Heinz) at 12 times earnings and I don't see why Buffett or anyone else would want to buy another, more expensive one.

dtb