Core Viewpoint - President Trump's aggressive trade policies have triggered a global trade war, causing significant economic uncertainty and a sell-off in equity markets, with the S&P 500 down by 12% since January [1] Company Performance - Coca-Cola has shown resilience amid market challenges, being a long-term holding in Berkshire Hathaway's portfolio for over 30 years, suggesting it is a strong buy-and-hold stock [2] - The company benefits from a substantial manufacturing footprint in various countries, which helps mitigate the impact of tariffs, as most of its products consumed in the U.S. are made domestically [4][5] - Coca-Cola operates in the defensive consumer staples sector, which tends to be more stable during economic fluctuations, outperforming the Vanguard S&P 500 Index Fund ETF year to date [6] Brand Strength and Market Position - Coca-Cola's strong brand allows it to pass on cost increases to consumers without losing significant market share, contributing to its strong performance this year [8] - The company has a vast and diversified portfolio of beverages, including low-sugar options, which aligns with evolving consumer health concerns [12] Dividend and Long-term Outlook - Coca-Cola is recognized as a Dividend King, having increased its payouts for 63 consecutive years, with a competitive forward yield of 2.8%, indicating the strength and durability of its operations [13] - Despite its current success, there are uncertainties that could affect Coca-Cola's performance in the near term, emphasizing the importance of a long-term investment strategy [9][10]
1 Warren Buffett Stock Crushing the Market This Year to Buy and Hold Forever