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2009 Fortune 40 Best Stock to Retire On

Current Graham
No. Ticker Company Name Industry Remarks DCF*
Price Value

Abbott Laboratories is engaged in the discovery, development, manufacture, and sale of a

range of health care products. It operates through four business segments: Pharmaceutical
Products, Nutritional Products, Diagnostic Products, and Vascular Products. The
Comment from my 2008 list
Pharmaceutical Products segment�s products include a line of adult and pediatric
1 ABT Abbott Laboratories cash cow, increased profits and cash in 2008, great $47.43 $59.59 $54.16
pharmaceuticals manufactured, marketed and sold worldwide. The Diagnostic Products
CROIC, FCF and ROE
segment�s products include diagnostic systems and tests manufactured, marketed and sold
worldwide to blood banks, hospitals, commercial laboratories. The Nutritional Products
segment�s products include a line of pediatric and adult nutritional products manufactured,
The Coca-Cola Company is a manufacturer, distributor and marketer of nonalcoholic
beverage concentrates and syrups in the world. Finished beverage products bearing its
trademarks are sold in more than 200 countries. The Company markets nonalcoholic
Comment from my 2008 list
sparkling brands, which include Diet Coke, Fanta and Sprite. The Company manufactures
2 KO Coca-Cola Co excellent cash flow, margins, CROIC, strong and $48.13 $51.33 $54.33
beverage concentrates and syrups, which it sells to bottling and canning operations,
consistent all round
fountain wholesalers and some fountain retailers, as well as finished beverages, which it
sells primarily to distributors. The Company owns or licenses approximately 500 brands,
including diet and light beverages, waters, enhanced waters, juices and juice drinks, teas,
General Mills, Inc. (General Mills) is a manufacturer and marketer of branded consumer
foods sold through retail stores. The Company is a supplier of branded and unbranded food
products to the foodservice and commercial baking industries. General Mills manufactures
Boring company. Positive FCF. Converts approx 9c
its products in 16 countries and market them in more than 100 countries. Its joint ventures
3 GIS General Mills Inc into FCF for every $1 of sales. Stable margins and $55.28 $65.66 $66.98
manufacture and market products in more than 130 countries and republics worldwide. The
returns.
Company�s major product categories in the United States are ready-to-eat cereals,
refrigerated yogurt, ready-to-serve soup, dry dinners, shelf stable and frozen vegetables,
refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza
Johnson & Johnson is engaged in the research and development, manufacture and sale of a
range of products in the healthcare field. Johnson & Johnson has more than 250 operating
companies. The Company operates in three segments: Consumer, Pharmaceutical, and
Medical Devices and Diagnostics. The Consumer segment includes a range of products used Comment from my 2008 list
4 JNJ Johnson & Johnson $56.60 $70.16 $98.37
in the baby care, skin care, oral care, wound care and women�s healthcare fields, as well as increase in debt-equity, good margins, good FCF
nutritional and over-the-counter pharmaceutical products. The Pharmaceutical segment
includes products in the therapeutic areas, such as anti-infective, antipsychotic,
cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology,
The Procter & Gamble Company is focused on providing branded consumer goods. The
Company�s products are sold in over 180 countries around the world primarily through
mass merchandisers, grocery stores, membership club stores, drug stores and in high-
Comment from my 2008 list
frequency stores, the neighborhood stores, which serve consumers in developing markets.
5 PG Procter & Gamble Co good FCF, steady margins, super CROIC, decrease $51.75 $68.75 $102.49
During the fiscal year ended June 30, 2008 (fiscal 2008), one product category accounted for
debt, outstanding
10% or more of consolidated net sales. The laundry category constituted approximately 16%
of net sales during fiscal 2008. In fiscal 2008, the Company was organized into three Global
Business Units: Beauty; Health and Well-Being, and Household Care. The Company had six
Waste Management, Inc. (WMI) is a provider of integrated waste services in North America.
Through its subsidiaries the Company provides collection, transfer, recycling, disposal and
waste-to-energy services. WMI�s customers include commercial, industrial, municipal and
residential customers, other waste management companies, electric utilities and Buffett style. Boring and predictable, big moat,
6 WMI Waste Management Inc $28.26 $38.33 $67.23
governmental entities. The Company operates in six operating groups, of which four are consistent FCF
organized by geographic area and two are organized by function. The geographic groups
include WMI�s Eastern, Midwest, Southern and Western Groups, and the two functional
groups are its Wheelabrator Group and WM Recycle America (WMRA) Group. The Company
McDonald�s Corporation franchises and operates McDonald�s restaurants in the food
service industry. These restaurants serve a varied, limited, value-priced menu in more than
100 countries globally. The restaurants are operated either by the Company or by
franchisees, including franchisees under franchise arrangements, and foreign-affiliated Generates cash, earnings with consistent and high
7 MCD McDonald's Corp $57.00 68..75 $105.43
markets and developmental licensees under license agreements. During the year ended returns. Market leader, still growing consistently.
December 31, 2007, the Company sold its businesses in Brazil, Argentina, Mexico, Puerto
Rico, Venezuela and 13 other countries in Latin America and the Caribbean, which totaled
1,571 restaurants, to a developmental licensee organization. The Company and its
FPL Group, Inc. (FPL Group) is a provider of electricity-related services. The Company has
two principal operating subsidiaries, Florida Power & Light Company (FPL) and NextEra
Energy Resources. FPL is a rate-regulated utility engaged primarily in the generation,
transmission, distribution and sale of electric energy. NextEra Energy Resources is the Inconsistent FCF due to very high capex. Increase in
8 FPL FPL Group Inc $56.69 $55.48 $116.16
Company�s competitive energy subsidiary, which produces the majority of its electricity debt to equity. Margins slightly improving
from clean and renewable fuels. FPL Group Capital Inc. (FPL Group Capital), a wholly owned
subsidiary of FPL Group, holds the capital stock of, or has equity interests in, FPL Group's
operating subsidiaries, other than FPL, and provides funding for those subsidiaries, including
Accenture Limited (Accenture) is a management consulting, technology services and
outsourcing organization. The Company�s business is structured around five operating
groups, which together comprise 17 industry groups serving clients. The operating groups of
the Company are Communications & High Tech, Financial Services, Products, Public Service Comment from my 2008 list
9 ACN Accenture Ltd $33.72 $35.00 $61.09
and Resources. great FCF, CROIC, margins, returns

The Chubb Corporation (Chubb) is a holding company for a family of property and casualty
insurance companies known as the Chubb Group of Insurance Companies (the P&C Group).
The P&C Group is divided into three business units: Chubb Commercial Insurance, Chubb
Specialty Insurance and Chubb Personal Insurance. Chubb Commercial Insurance offers a Comment from my 2008 list
10 CB Chubb Corp $39.51 NA NA
range of commercial insurance products, including coverage for multiple peril, casualty, Outside circle of competence
workers� compensation, and property and marine. Chubb Specialty Insurance offers a
variety of specialized professional liability products for privately and publicly owned
companies, financial institutions, professional firms and healthcare organizations. Chubb