KO
🥤 Coca-Cola’s strong brand and pricing power allow it to achieve spectacular returns on capital.
💰 The company’s ability to transfer inflation to prices ensures consistent profitability.
💪 Its durable competitive advantage contributes to high returns and makes it a good business.
@invertirdesdecasa:
“Why do you think Coca-Cola has those spectacular returns on capital? Because it’s Coca-Cola. Because if there’s inflation, it calmly transfers it to prices. Of course, I’m not saying, I’m exaggerating a bit to make the concept understood, but Coca-Cola, to the true Coca-Cola drinkers, a friend recently sent me a photo listening to the video, watching a video in the car, which I’m going to upload to Instagram because the photo is very good, and he loves Coca-Cola. And I’m sure that if there’s a price increase, he’ll find a way to pay for Coca-Cola. Well, that’s why that advantage, that brand strength, that product strength, is logically translated, of course, into good returns on capital, into high returns from Coca-Cola with what it works with, and therefore, Coca-Cola is a good business. Now, can you estimate the future growth or the future free cash flows of a company like Coca-Cola? This is also an obvious example, or of Procter & Gamble, or of Nike, or of, well, I think there it’s a bit easier, isn’t it? I’m not saying it’s simple, but it’s a bit easier.”
@invertirdesdecasa. Watch the exact part of the YouTube video where the stock is discussed:
View the video on YouTube.
Read more articles analyzing Coca-Cola (KO) at the provided link. KO stock.
