#3 - Coca-Cola (NYSE:KO)
The Coca-Cola Company (NYSE: KO) is one of Berkshire Hathaway’s (NSYE: BRK.B) largest positions—and investors rarely see Warren Buffett make a public appearance without a can of Coke. But what are the reasons Buffett decided to become the largest KO shareholder?
For starters, the company has a reliable dividend that has been increasing for 64 years, which is an astonishing achievement. And it has done that without sacrificing growth. In fact, the total return of Coca-Cola in the last 15 years is over 310%. That may not quite outpace the S&P 500, but it’s still a better-than-average return.
Buffet is also likely a fan of the company’s asset-light model. Rather than owning bottling operations, Coca-Cola sells its syrup to bottlers, allowing it to keep capital expenditures low while maintaining wide profit margins.
As America has become more health-conscious, Coke’s portfolio has expanded beyond its iconic soft drinks to include smart water and sports drinks. The company also has a minority stake in Monster Beverage Corp. (NASDAQ: MNST), one of the best-performing stocks since 2014.
About Coca-Cola
The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores.
More about Coca-Cola- Current Price
- $71.82
- Consensus Rating
- Buy
- Ratings Breakdown
- 18 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $74.24 (3.4% Upside)
