Warren Buffett Stock Picks – Coca Cola
Categorized: Warren Buffett investment strategy, Warren Buffett stock picks | 2 comments
We all want to have a Warren Buffett portfolio – that is, a stock portfolio that stands the test of time to beat the market 28 out of 31 years.
The economy goes through cycles as we have seen in the dot com era and the housing bubble. A lot of people made money before the crash but have they been as consistent as Warren Buffett stock picks regardless of bear or bull markets?
What is considered a Warren Buffett stock?
A perfect example of a Warren Buffett stock pick is Coca Cola. This is because the business is incredibly simple and easy to understand. The Coca Cola Company actually only produces the syrup concentrate – which costs a pittance to make. To distribute the drink world wide, it sells franchise rights to bottlers in different geographical locations all over the world who then mix in the carbonated water and sweeteners.
There you have the key ingredients to a Warren Buffett investment: simple to understand, huge profit margins and global distribution dominance. And let’s also not forget the branding power of a 100 year old plus Coca Cola name with its advertising campaigns to world events such as the Olympics.
This Warren Buffett strategy of a moat business and how Coca Cola fights off competition from Pepsi and other local store brands. Coca Cola is the ultimate Warren Buffett stock pick that stands the test of time.
Tagged with: Investment strategy, Stock picks
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on March 24, 2008 at 11:33 amPingback by Investments on The Finance World For News and Information Around The World On Finance » Blog Archive » Warren Buffett Stock Picks
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on April 9, 2008 at 2:07 am