What's in a name? It's one of the hardest things for us Joe and Jane Oddlots to figure out. No one would argue that names like Coke
But how much are these really worth to an investor? Coke may be one of the greatest brands in the world, but its stock has done little but slap investors around. And compared to some of the hotter brands of the past few years, shareholders in Coke have gotten off pretty lucky. Pepsi has fared much better, but then it's got a whole portfolio of strong brands, including Frito-Lay chips, Quaker Foods, and Gatorade.
On the other hand, the pain experienced by those who've held Krispy Kreme
Yet every time I make such a suggestion, I get volumes of email imploring me to give a little more respect to the brand.
Here's how much value I put in a brand: Zero. Zilch. Bupkis.
To me, a brand is only as important as what it's done for your top and bottom line lately.
If your brand can help generate strong sales, and they're being made at prices that pay off all the way down to the bottom line, you've got something I might pay up to own. If they're not, well, you just may be holding an Eastman Kodak
For related Foolishness:
- See why Kodak is fading fast.
- Check your portfolio to make sure you're not investing where the monkeys whiz.
- Why did TiVo go "Oh no?"
Seth Jayson likes it when his companies show him the mon-NAY. At the time of publication, he had positions in no company mentioned here. View his stock holdings and Fool profile here. Krispy Kreme and TiVo are Motley Fool Stock Advisor picks. Coke is a Motley Fool Inside Value pick. Fool rules are here.