KO
🥤 Coca-Cola’s strong brand and market position allow it to transfer inflation to prices effectively.
💪 This competitive advantage results in high returns on capital.
✅ The company is considered a good business due to its ability to generate substantial profits with its assets.
@invertirdesdecasa:
“Why do you think Coca-Cola has those spectacular returns on the capital it has? Because it’s Coca-Cola. Because if there is inflation, it calmly transfers it to prices. Of course, I am not saying, I am exaggerating a bit to make the concept understood, but Coca-Cola, to the true Coca-Cola drinkers. Recently, a friend just sent me a photo listening to the video, watching a video in the car, which I am going to upload to Instagram because the photo is very good, and he loves Coca-Cola, and I am sure that if there is a price increase, he will find a way to pay for Coca-Cola. Well, that’s why that advantage, that brand strength, that product strength, is of course logically translated into good returns on capital, into high yields from Coca-Cola with what it works with, and therefore Coca-Cola is a good business. You can estimate the future growth or the future free cash flows of a company like Coca-Cola. This is also an obvious example.”
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