The Coca-Cola Company (NYSE:KO) Morgan Stanley Global Consumer & Retail Conference December 3, 2024 11:00 AM ET Company Participants James Quincey - Chairman & CEO Conference Call Participants Dara Mohsenian - Morgan Stanley Dara Mohsenian Good morning, everyone. I'm Dara Mohsenian, Morgan Stanley's Beverage and Household Products Analyst. I'm very pleased to welcome Coca-Cola to our conference. Just before we get started, I do have to note some important disclosures. Please see the Morgan Stanley Research ...

Coca-Cola's Policy Shift on Plastic Use - Coca-Cola has abandoned its previous goals to increase reusable packaging and reduce virgin plastic use, instead focusing on increasing recycled plastic use to 30%-35% globally by 2035 and ensuring the collection of 70%-75% of bottles and cans introduced into the market annually [1] - The company has dropped its 2023 Environmental Update goals, which included selling 25% of beverages in refillable/returnable packaging by 2030 and reducing virgin plastic use by 3 million metric tons from 2020 to 2025 [1] - Coca-Cola's new policy is expected to result in billions more single-use plastic bottles and cups entering waterways and seas, as the company remains the world's top plastic polluter according to the Break Free From Plastic Brand Audit [1] Oceana's Response to Coca-Cola's Policy Change - Oceana criticizes Coca-Cola's decision as short-sighted and irresponsible, stating it deserves condemnation from customers, employees, investors, and governments concerned about plastic pollution's impact on oceans and health [1] - Oceana estimates that if Coca-Cola had met its 25% reusable packaging goal by 2030, it could have avoided producing over 100 billion 500ml single-use plastic bottles and cups and prevented 8.5-14.7 billion plastic items from reaching waterways and seas [1] - Oceana argues that Coca-Cola's new recycling pledges will not significantly reduce its overall plastic use and calls for investors and governments to hold the company accountable for its plastic waste and pollution [1] Oceana's Mission and Achievements - Oceana is the largest international advocacy organization focused solely on ocean conservation, working to rebuild abundant and biodiverse oceans through science-based policies in countries controlling one-quarter of the world's wild fish catch [1] - The organization has achieved over 300 victories addressing issues such as overfishing, habitat destruction, oil and plastic pollution, and the killing of threatened species like turtles, whales, and sharks [1] - Oceana's efforts aim to restore oceans to a state where 1 billion people can enjoy a healthy seafood meal daily, contributing to both ocean conservation and global food security [1]

Group 1: Investment Philosophy and Strategy - Warren Buffett's investment philosophy focuses on value and long-term growth, emphasizing the importance of identifying and holding "forever" stocks [1] - Despite reducing stakes in Apple and Bank of America, Buffett's core strategy remains unchanged [1] Group 2: Pool Corporation (NASDAQ: POOL) - Pool Corporation has seen a year-to-date decline of 2.85% in 2024, but recent developments indicate a potential turnaround [3] - The Q3 earnings report exceeded expectations, leading to a 7.6% stock surge, driven by strong private-label chemical sales and consistent demand for maintenance products, despite a 3% year-over-year sales decline [4] - Pool maintained a gross margin of 29.1% and reported adjusted EPS of $3.27, surpassing Wall Street forecasts by 3.5% [4] - Buffett's confidence is reflected in his purchase of 404,057 shares valued at $152 million as of September 30, 2024, although the valuation slightly declined to $146 million by mid-November [5] - Currently trading at $377, Pool has gained 3% over the past five days and 4% over the last month, indicating building momentum [6] - Innovative initiatives like Pool360 technology and a focus on essential product demand position Pool as a promising recovery play for 2025 [6] Group 3: Coca-Cola (NYSE: KO) - Coca-Cola remains a stable investment with a 3.03% dividend yield and a 62-year streak of consecutive dividend increases, appealing to income-seeking investors [7] - Recent earnings reports show a decline in unit case volumes and reliance on price hikes for revenue growth, alongside currency risks from a strengthening U.S. dollar [8] - Despite short-term challenges, Coca-Cola's forward P/E ratio suggests it is attractively valued, making it a good choice during market dips [8] - Currently trading at $64, Coca-Cola's stock has dropped 1.8% over the past month but has gained 1.8% over six months, showcasing its resilience as a long-term investment [10]

Core Viewpoint - Investing in consumer staples companies like Procter & Gamble and Coca-Cola can provide a solid foundation for a diversified portfolio, especially in uncertain economic times [1][4][12] Consumer Staples Sector - The consumer staples sector includes essential products such as food, beverages, and personal care items, which are consistently purchased regardless of economic conditions [2][4] - The importance of consumer staples was highlighted during the early days of the coronavirus pandemic when essential products were in high demand [3] Company Analysis: Procter & Gamble (P&G) - P&G operates in various segments including health and beauty, baby care, and paper goods, focusing on high-end products that offer discernible benefits [6] - The company's strength lies in its research and development, aiming to innovate rather than just compete for market share [7] - P&G's stock has a price-to-earnings ratio of around 30, which aligns with its five-year average, indicating a fair price for a strong company [8] Company Analysis: Coca-Cola - Coca-Cola's business model revolves around owning dominant beverage brands, supported by a robust global marketing and distribution system [9] - The company has successfully acted as an industry consolidator, acquiring smaller brands and leveraging its strengths to enhance their growth [10] - Coca-Cola's stock also has a price-to-earnings ratio in line with its five-year average, suggesting it is a fair investment in the current market [11] Dividend Performance - Both P&G and Coca-Cola are recognized as Dividend Kings, having increased their dividends annually for over six decades, reflecting strong business fundamentals [12] - P&G offers a dividend yield of 2.2% and Coca-Cola offers 3%, both significantly higher than the S&P 500 index's yield of approximately 1.2% [12] Investment Outlook - While P&G and Coca-Cola may not provide overnight wealth, they are reliable stocks that can contribute to long-term wealth accumulation and allow for more aggressive investments in other areas of a portfolio [13]

Core Insights - The article emphasizes the importance of identifying and capitalizing on investment opportunities, particularly in a rallying market [1]. Group 1 - The author expresses a strong aversion to wasted opportunities in investment [1]. - The market has been experiencing a rally, yet there are still potential opportunities to be discovered [1]. - The author aims to assist lower and middle-class workers in building investment portfolios focused on high-quality, dividend-paying companies [1].

Four closely watched companies are trading near 52-week lows.When it comes to investing, just because a company is trading at a 52-week low, that does not necessarily mean it is a buy. The same goes for a stock at a 52-week high not necessarily being a sell.However, there could be opportunity depending on the situation, and in today's video, I am going to look at four closely watched stocks trading near their 52-week lows to determine whether each is a buy or not. One of those companies is Coca-Cola (KO 0.2 ...

It has been about a month since the last earnings report for Coca-Cola (KO) . Shares have lost about 5.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Coca-Cola due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Coca-Cola Beats Q3 Earnings & Sales Estimates, Rev ...

Certain stocks in the market are not supposed to sell off at any time, and some brands and business models are widely known to be rock-solid and relatively immune to volatility. However, every once in a while, the system throws an unexpected event at these companies, rendering most volatility models useless and leaving most investors holding out for answers. Today, three retail stocks that might easily pass the argument for being more part of the consumer staples sector have sold off on speculations that th ...

Billionaire investor Warren Buffett just released the latest Berkshire Hathaway 13F filing, and there were some surprises, such as purchases of Domino's Pizza and Pool Corporation stocks. There were a few other additions and sales.One thing that hasn't changed, and hasn't changed in 30 years, is Buffett's position in and love of Coca-Cola (KO 0.64%). He almost never misses an opportunity to talk about why it's a great business and stock to own.With the new composition of the Berkshire Hathaway equity portfo ...

Declining demand and a strong U.S. dollar could impact Coke's results.Warren Buffett-led Berkshire Hathaway (BRK.A) (BRK.B 0.55%) has owned Coca-Cola (KO -1.29%) stock for decades. Coke is, without a doubt, one of Buffett's best investments ever, as the position's value has increased several fold while paying a steady stream of passive income.Although typically a stable stalwart, Coke stock is down over 12% in the last month, erasing most of its year-to-date gains. Here's a look at why Coke is selling off a ...