Here Are The Stocks That Make Up 70% Of Warren Buffett's Portfolio- Coca-Cola-Part3

  Here Are The Stocks That Make Up 70% Of Warren Buffett's Portfolio- Coca-Cola-Part3   Finally, it's time for the third important stock in the Portfolio.  

• Coca-Cola: 7,2% of invested assets

  Third is beverage giant Coca-Cola KO (NYSE) $55,67 +0,13 (+%0,23). Of the 46 securities currently held by Berkshire Hathaway, Coca-Cola is the oldest stock with the longest maturity at 33 years. Like Apple, Buffett is most likely known to value Coca-Cola for its geographic reach and exceptional branding. It sells its Coke products worldwide outside of two countries (North Korea and Cuba), which has grown into a beverage giant with more than 20 beverage brands bringing in at least $1 billion in annual sales. In addition, this beverage giant controls 20% of the cold beverage market in developed markets, which provide highly predictable cash flow, and 10% of cold beverages sold in emerging markets where the company can achieve higher growth potential going forward.

Here Are The Stocks That Make Up 70% Of Warren Buffett's Portfolio- Coca-Cola-Part3

It is also one of the most recognized brands in the world. Using social media, Coke has interacted with multiple generations of consumers, thus establishing its omnichannel presence based on its best-known brand ambassadors. But for Buffett, it's the crazy dividends his company brings each year that makes Coca-Cola attractive. Regardless, Coke's annual payout of $1.68 doesn't look that impressive. However, considering that Berkshire's cost basis is approximately $3.25 per share, Oracle of Omaha's cost return is close to 52%. This shows that Buffett is doubling his initial investment in Coca-Cola every two years thanks to the dividend alone. Here Are The Stocks That Make Up 70% Of Warren Buffett's Portfolio- Coca-Cola-Part3  

Source: The Motley Fool

 

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