Why I think you should invest in The Coca-Cola Company (KO/NYSE)
If you are looking to invest in a solid company, use Warren Buffett's idea of investing in companies that you truly like. Look at Coca Cola (KO) for example. In fact Mr. Buffett owns quite a lot of this stock through his Berkshire Hathaway holdings. It is presently the largest holding that Berkshire has. The Atlanta based corporation has products recognized throughout the world, and the company continues to grow. Coke sells their over 500 brands of products more than 200 countries. They presently provide more than 1.6 billion drinks a day worldwide.
Coca Cola gives investors a very high return on equity (ROE), meaning that for the money you invest your return is typically higher than the industry average. In the case of Coke, it over 19% higher than other beverage or similar companies return. The company has also increased their stock dividend every year for almost 50 years straight.
Coca Cola is trading currently below its 1 year high and should return to that mark this year. Of course there are never any guarantees with investing, but Coke is a solid play right now. There is a good possibility of 10% upside in the year to come.
Coke is currently spending more money in the newest form of advertising; social networking. Not only do they promote the company in the popular social networks, but also in the lesser known ones. This has cut their advertising cost while boosting product awareness. Coke is now starting a social network called Coke Zone. This will be an online place where members will have opportunities to win prizes, share in lots of free items, and more. Much of the merchandise members can get at the site is of course Coca Cola branded,thus providing even more low cost advertising for this company.
You can invest in Coca Cola with a DRIP or dividend reinvestment plan. It does not take lot to start and will continue to grow yearly as the dividends are rolled back into more stock. Coca Cola offers the direct investment plan, through Computershare an online investment center. This allows the investor tp buy, sell and reinvest all online without a broker.
You can also choose to invest in the many related companies that bottle Coca Cola.
Coke is touted a great starter stock for children to get their portfolio going and teach them about investing. It is also a great investment for retirees with the strong dividends paid. It could be said that Coca Cola is a strong lifelong investment.
Why I think you should invest in the Coca Cola Company, should be obvious as through all the ups and downs of the stock market over the past decades, Coke has remained a solid investment for everyone who owns it. So, following this categorization of stocks based on risks, Coca Cola can be called a fairly low-risk stock investment.