PRNDY - Diageo - Exceptional Quality Has Its Price

• Diageo and its competitors have emerged from the pandemic very well and are experiencing strong growth.
• The company is growing in a disciplined manner and has a very strong portfolio of Scotch whisky brands and other spirits such as gin and rum.
• Diageo is highly profitable and reports stable margins, even in times of rising raw material and shipping cost - a sign of continued strong consumer loyalty.
• The company is a dividend aristocrat and income-oriented investors seeking international diversification will likely be very happy with Diageo in the long run.
• However, at a share price of £37.5, the company appears overvalued and while I acknowledge the market's optimism, I currently would not add to my position.

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