In 1987, Warren Buffett made a massive bet on Coca-Cola at the bottom, simply because he had finally waited for the long-anticipated crash. He had been watching the stock for a long time but had always found it too expensive. It wasn't until 1987 that Pepsi sparked a price war, putting pressure on Coca-Cola's stock price. Then, on October 19, the "Black Monday" crash erupted, with the Dow plunging 22.6% in a single day. Coca-Cola plummeted about 20% and hovered near the bottom, consolidating. That was the sweet spot he had been waiting for. By the end of 1998, the market value of this investment had surged to $13.4 billion, delivering an 11x return over ten years, with an annualized return of 27%. Statistics show that among the 44 classic investment targets Buffett often mentions, the average price-to-earnings (P/E) ratio at purchase was just 14x, and 68% of those stocks were bought at a P/E below 15x. Even for a company with a moat as deep as Coca-Cola's, the P/E ratio when he pulled the trigger back then was strictly kept at 14.5x.