The Coca-Cola Company (KO) NYSE —Coca-Cola (KO) also sold off sharply due to COVID-19. While traditional sugary soda sales may be down, Coke is extraordinarily strong for energy drinks, non-soda beverages, juices, and teas. These divisions have shown strong growth. Sales of Coca-Cola (KO) have decreased since restaurants have been closed due to the pandemic, but they are starting to re-open gain and orders should pick up for all beverages that Coca-Cola (KO) sells.
The company has a strong brand presence and recognition to weather any down tun. We see the stock as a potential for long term growth and a great addition to one’s portfolio.
Coca Cola has 500+ brands across different beverage categories. We offer a variety of drinks like organic tea, coconut water, milk, and grab-and-go coffee, so consumers have many options. Source: [i]
Coke also sources their ingredients sustainably and ethically.
James Quincey is Chairman and CEO of The Coca-Cola Company. Mr. Quincey, who first joined the company in 1996, has held a number of leadership roles around the world. He became CEO in 2017 and Chairman of the Board in 2019. “We’re building this business for the next century, not just the next quarter.” Mr. Quincey serves as vice co-chair of The Consumer Goods Forum and is a founding member of the New York Stock Exchange Board Advisory Council. He is also a director of Pfizer Inc. Source[ii]
Top Institutional Holders
Holder Shares Date Reported % Out Value
Berkshire Hathaway, Inc 400,000,000 Mar 30, 2020 9.31% 17,700,000,000
Vanguard Group, Inc. (The) 327,203,254 Mar 30, 2020 7.62% 14,478,743,989
Blackrock Inc. 279,336,356 Mar 30, 2020 6.50% 12,360,633,753
State Street Corporation 183,307,489 Mar 30, 2020 4.27% 8,111,356,388
Wellington Management Company, LLP 102,693,257 Mar 30, 2020 2.39% 4,544,176,622
JP Morgan Chase & Company 58,667,889 Mar 30, 2020 1.37% 2,596,054,088
Top Mutual Fund Holders
Holder Shares Date Reported % Out Value
Vanguard Total Stock Market Index Fund 108,645,223 Dec 30, 2019 2.53% 6,013,513,093
Vanguard 500 Index Fund 79,379,663 Mar 30, 2020 1.85% 3,512,550,087
SPDR S&P 500 ETF Trust 42,647,616 Mar 30, 2020 0.99% 1,887,157,008
Fidelity 500 Index Fund 34,453,813 Feb 28, 2020 0.80% 1,842,934,457
Vanguard Institutional Index Fund-Institutional Index Fund 34,121,401 Mar 30, 2020 0.79% 1,509,871,994
[i] https://www.coca-colacompany.com/sustainable-business/in-our-products
[ii] https://www.coca-colacompany.com/company/leadership/james-quincey
Warren Buffett’s money has followed his mouth. His Berkshire Hathaway conglomerate owns about 10% of Coca–Cola, a stake worth around $22 billion.
“When they bought the Coca Cola Company, the Candler family bought it from Pembertons back in 1904 or 1906, they paid $2,000 for the company. If the Pemberton family had reserved a penny a serving royalty a serving, the Coca Cola company would be sending $2 billion to the Pemberton family every year and you wouldn’t even see the difference in the figures. It’s there.”
Buffett is well-known for his affection for the company; Berkshire Hathaway is Coca–Cola’s largest shareholder with 400 million shares, and Buffett himself drinks five Cokes a day. Source: Barrons
CWEB Analysts see the stock as a potential for long term growth and a great addition to one’s portfolio and upward of $70 by 20121
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