KO
📈 Coca-Cola exemplifies Buffett’s preference for businesses with simple, understandable models and enduring products.
🌍 The company demonstrates stable and predictable demand, aligning with Buffett’s strategy of investing for the long term (10, 20, 30 years).
🔒 Its iconic brand and loyal customer base provide a durable competitive advantage, making it a resilient investment less dependent on single leaders.
@adriarivero:
“Buffett shifted his style, influenced by Charlie Munger, realizing time favors exceptional businesses over mediocre ones, even if cheap. He began investing in ‘wonderful businesses’ like Coca-Cola or American Express, paying slightly higher but fair prices for a higher quality business model. Later, Coca-Cola is cited as an example of a simple business model: it produces drinks people buy constantly. It’s also mentioned alongside Gillette as having iconic brands and loyal customers, fitting the criteria for stable, predictable demand over decades. Furthermore, companies like Coca-Cola or See’s Candies exemplify businesses that generate wealth for decades without depending on a single person; the business itself is inherently solid. Buffett also notes that if he had sold Coca-Cola after a 100% gain, he would have missed decades of exceptional returns.”
Watch the exact part of the video where @adriarivero talks about Coca-Cola here:
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