Photo Source: Motley fool
Sometimes, we can learn from the biggest investors – but what we work may not use. Take Warren Buffett for example. Some of the shares I understand as businesses. But others don’t do it. So I’m not going to invest them even they have done well ‘with the SAGE OF OMA’.
That is because I like to stick to that buffett is expensive ‘Circle of skill‘. After all, putting money in business I don’t understand it is not investing at all, but just guessing.
Here’s a model of simple, proven and compelling business model
Some of the Buffett’s currencies are well-lived inside my circle of skill. For example, take his grip Coca-Cola (NYSE: KO).
I think investment case here is powerful. The market of soft drinks, including water, there are many and may be always for the visible future.
Many companies compete in that space. So what distinguishes coca-cola separately? It has different competitive benefits, including iconomic types and related formulas. The company enjoys economics, because of its large solutions of the world.
Coca-Cola has also violates the division of interested employees. Local bottles (where there can be a pole) responsible for the most sharp production, sales and distribution. (London-based Coca-Cola HBC including Coca-Cola Europacific partners are examples).
So Coca-Cola itself can focus on creating the product and sells syruss on those smokers. That’s a model with a desire to try to do everything and lets it focus when its great power lies.
It has been the amazing investment of buffett
No plain Buffett loves business. Since he finishes building his pole in 1994, it is increasing in value – and now he receives more than half of his first time every year.
When it comes to allegations, Coca-Cola also has a very good track record. Business model pushes a lot of money and that can support strong separation. Last week, the company has announced that it will increase its division by their 63-year budget!
Should i buy shares?
However, although Coca-Cola became a successful Buffett, he did not buy shares from the company since the last century.
I do not know why. Maybe you want to keep her portfolio enough. One accident I can see is that modifying consumer attitudes on healthy drinks can see a long-term drop of many types of soft drinks, harming sales and profit in COOCA-Cola.
But that adds me without buying the Coca-Cola shares of my portfolio is their share price. Currently, company trading in the amount of receipt of approximately 28. That is higher than I would like to pay, even a bright business.
Every investor is different and you need to make their own decision. What works with buffett may not be the right decision for me.
When it comes to holding his grip in Coca-Cola, I think I buy a mentally ill – but only with the right price.
Buffett says he likes to buy statistics in large companies at attractive numbers. I too!
But yet, Coca-Cola is in my crisis and cannot invest in this year, unless the estimate is very attractive.
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