Dueling Fools

Dueling Fools
April 21, 1999

The Cola Wars
Coke price (04/20/99): $65 1/4
Pepsi price (04/20/99): $37 1/8

Do you think Coke (NYSE: KO) is it or is Pepsi (NYSE: PEP) the real thing? With no brand yielding the flag of fizzy surrender, the two booming pop stars are bound to continue to wage carbonated warfare.

Which front do you back? This week Matt Richey (TMF Verve) and Warren Gump (TMF Gump) are Dueling Fools. Matt drinks Coke. Warren sips Pepsi. But this battle of the brands goes beyond simple taste tests. Which stock is the better holding going forward? The bottle caps have been twisted off and I trust the fizzle is already tickling your nose.

May the best Fool win!

And don't miss this week's Duel Flashback, where we log back on to our Novell (Nasdaq: NOVL) Duel.

You Get to Vote!

Once you've read the arguments and the rebuttals, it's your time to cast your vote. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Dueling Fools Message board to continue the duel.

[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]

The Bull...
Is it any wonder that Buffett loves this company? Coca-Cola's business is beautifully simple. People get thirsty, and Coke is there to quench that thirst. Using its powerful brands and worldwide distribution network, the company's goal is to place a Coca-Cola product within arm's reach of every thirsty human being on the planet.
The Bear...
Let me start off this battle by giving my competitor a gracious nod. Coke is a much stronger worldwide soft-drink brand than Pepsi, and probably always will be. That being said, it is important to realize that Pepsi and its other soft-drink brands are extremely valuable entities that should enjoy substantial profit growth in the years ahead.

Results for last week's Gender-Specific Investing Duel

Answer Percentage
I can't make up my mind


TMF Selena's Bull argument


TMF Yi-Hsin's Bear argument


They were both excellent


They were both lame