Boring Market

The Coca-Cola Company is a great company in unstable economic times because they are a global consumer brand with a diverse set of products. Their stock price holds steady with an ever increasing dividend. They know expansion is a worldwide strategy, instead of over-saturating occupied domestic turf. They buy successful brands such as Odwalla and Glaceau to supplement their all-important line of beverages. They know it’s not just a Coke, it’s a lifestyle brand.

Coca-Cola is a constantly evolving company with a straight-forward strategy of making money by selling great beverages to consumers. When all the financial institutions and technology companies lose all their value I firmly believe Coca-Cola will be the last man standing. They rarely skew far from their heritage and legacy of sticking to quality beverages, and with 400 brands in over 200 countries, nearly everyone around the world has their own connection to Coca-Cola.

Many investors don’t give Coca-Cola the time of day because well…it’s a boring company. There isn’t the booming growth you see in a lot of speculative tech companies. Think of it this way, it’s the Berkshire Hathaway of the beverage businesses. They expand their products into every facet of the non-alcoholic beverage market. Because 20 percent of Coca-Cola profits solely come from North America, it takes a defensive approach to this market. For lack of a better word, you could say this company is “recession-proof”. They have been around for more than 120 years and have already weathered several global crises. There will always be demand for their products.

Tags: Coca-Cola·Consumers·Market·Recession·Stock·Value