Down 14%, Is It Time to Buy This Top Warren Buffett Stock Before 2025?

Company Overview - Coca-Cola is a top beverage stock owned by Berkshire Hathaway and Warren Buffett, representing 8.4% of Berkshire's public equities portfolio [1] - The company has a durable competitive advantage with its globally recognized brand, operating in over 200 countries and territories [2] - Coca-Cola holds a 40% market share in the non-alcoholic ready-to-drink industry [2] Financial Performance - In Q3 2024, Coca-Cola's unit volume decreased by 1% year-over-year, but this was offset by a 10% price increase [3] - The company has consistently raised its dividend for 62 consecutive years, with a current dividend yield of 3.1% [8][9] - Over the past decade, Coca-Cola's operating margin has averaged an impressive 26.8% [11] Investment Considerations - Coca-Cola's stock has dropped 14% from its September all-time high and currently trades at a P/E ratio of 25.8, slightly higher than the S&P 500 [1][7] - The company's low growth prospects and mature market limit its ability to significantly increase revenue [6][7] - Coca-Cola is not expected to outperform the S&P 500 in the long term but may appeal to dividend-focused investors [9] Strategic Advantages - Coca-Cola possesses strong pricing power, allowing it to combat inflationary pressures by raising prices [3] - The company faces virtually no risk of obsolescence, providing a high level of predictability in its business model [4][5] - Coca-Cola's consistent performance and lack of disruption risk contribute to its status as a high-quality enterprise [1][4]