- The CC method is not about choosing blue chips. Its about choosing companies that have consistently grown sales and have healthy ROE over 10 years. We need to check first if the list of “blue chips” above meets the criteria to be included in the coffee can. There may have been others that fulfilled the criteria and not appear in this list.
- Taking the list from 1978 and checking in 2018 - 40 years is rather unfair to the thesis of CC! What happened to this list in 1988 is a fairer thing to check.
- Nowhere does the CC method say, have one can all your life. The very fact that they make an annual list shows that the list can change. So, the recommendation presumably is to add the current year’s stock, without disturbing the previous year’s stock. If a stock repeats, just add to existing holding.
For longer horizons, i.e. 20 years and above ( lifetime investment !), there’s a separate thread and the criteria that I could conjure up are somewhat different than financial ones. Longer the time horizon, harder is the framework.