why coca-cola is a warren buffett stock

Download Why Coca-Cola is a Warren Buffett Stock

Post on 10-Aug-2015




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  1. 1. Why Warren Buffett Owns Coca-Cola Stock
  2. 2. Warren Buffett loves Coca-Cola Warren Buffett first started buying Coca-Cola stock in 1988, and he has never sold a single share of the company. Berkshire Hathaway owns 400,000 shares of Coca- Cola, for a market value of more than $16 billion. Coca-Cola is the second largest position in Berkshire Hathaways portfolio behind Wells Fargo. Berkshire owns approximately 9.2% of Coca-Cola.
  3. 3. Main questions for investors Crushing the market over the long term
  4. 4. Buffett is a big Coca-Cola consumer If I eat 2,700 calories a day, a quarter of that is Coca-Cola. I drink at least five 12-ounce servings. I do it everyday. Im one quarter Coca- Cola. Warren Buffett.
  5. 5. Its all about competitive advantage The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors. Warren Buffett.
  6. 6. Coca-Cola enjoys tremendous brand power
  7. 7. Gargantuan distribution network
  8. 8. Coca-Colas durable competitive advantage If you gave me $100 billion and said to take away the soft drink leadership of Coca- Cola in the world, I'd give it back to you and say it can't be done. Warren Buffett
  9. 9. Pricing power drives profitability The single most important decision in evaluating a business is pricing power. If you've got the power to raise prices without losing business to a competitor, you've got a very good business. And if you have to have a prayer session before raising the price by 10%, then you've got a terrible business. Warren Buffett.
  10. 10. Growing dividends reflect fundamental quality
  11. 11. Coca-Colas future Increased focus on healthier products such as water, tea, and juice to adapt to changing consumer demand Strong pricing and product innovation driving growth in developed countries Strong volume growth in emerging markets Productivity enhancements and cost savings to increase margins
  12. 12. Industry growth: $300 billion towards 2020
  13. 13. Room for growth
  14. 14. Buffett is on board for the long term We've never sold a share of Coca-Cola stock, and I wouldn't think of selling a share. I'm the kind of guy who likes to bet on sure things. No business has ever failed with happy customers... and you're selling happiness. Warren Buffett.
  15. 15. 3 Companies Poised to Explode When Cable Dies Cable is dying. And there are 3 stocks that are poised to explode when this faltering $2.2 trillion industry finally bites the dust. Just like newspaper publishers, telephone utilities, stockbrokers, record companies, bookstores, travel agencies, and big box retailers did when the Internet swept away their business models. And when cable falters, you don't want to miss out on these 3 companies that are positioned to benefit. Click here for their names. Hint: They're not the ones you'd think!