Company Overview - Coca-Cola is a mega-cap company with a market value of $302 billion, selling over 200 varieties of drinks and serving 2.2 billion servings daily across more than 200 countries and territories [1]. Brand Strength - The defining attribute of Coca-Cola is its brand name, supported by unrivaled distribution, strong marketing, and consistent product quality, making it one of the most recognizable brands globally [3]. - Warren Buffett's investment in Coca-Cola, with Berkshire Hathaway owning 400 million shares, highlights the brand's strength and value [4]. Pricing Power and Financial Performance - Coca-Cola's brand supports its pricing power, allowing management to implement a 4% price growth in the third quarter, which boosts revenue despite limited unit volume growth [5]. - The company has demonstrated impressive profits, with a trailing 10-year operating margin of 26.4%, largely due to reliance on third-party bottlers and distribution partners [6]. Stability and Longevity - Coca-Cola's staying power is a significant asset, as it has remained relevant since its founding in 1886, with operations evolving primarily through product portfolio expansion and market entry [7][8]. - The non-alcoholic ready-to-drink beverage industry, where Coca-Cola operates, is not prone to technological disruption, contributing to the company's stability [9].
Is Coca-Cola Stock Your Ticket to Becoming a Millionaire?