Jump to content

KO - Coca-Cola Company


valueinvesting101

Recommended Posts

  • Replies 177
  • Created
  • Last Reply

Top Posters In This Topic

I thought the cans were purchased by bottlers and KO just sold syrup?

 

Very possible. I don't think it matters. It's obvious that he's just theorizing and that he didn't look super deep into it. Doesn't mean 3G couldn't cut costs by a lot like they did everywhere they went.

Link to comment
Share on other sites

I think most of us know that KO hasn't been a good investment in quite a while. I looked at it again today...and man, it's pretty terrible.

 

It's trailed "beverage - soft drinks" over the past 1, 3, 5, 10 and 15 years by -.85%, -.84%, -2.03%, -1.58%, and -2.69%.

 

It's trailed the S&P 500 over the same periods, -17.52%, -7.31%, -4.96%, -1%, -1.33%. Ouch.

Link to comment
Share on other sites

I think most of us know that KO hasn't been a good investment in quite a while. I looked at it again today...and man, it's pretty terrible.

 

It's trailed "beverage - soft drinks" over the past 1, 3, 5, 10 and 15 years by -.85%, -.84%, -2.03%, -1.58%, and -2.69%.

 

It's trailed the S&P 500 over the same periods, -17.52%, -7.31%, -4.96%, -1%, -1.33%. Ouch.

 

15 years is nothing.  It will take at least another 50 years before you can determine whether it has been a good investment or not.  Please put an alert on your calendar to update this post on June 18, 2064. 

Link to comment
Share on other sites

I think most of us know that KO hasn't been a good investment in quite a while. I looked at it again today...and man, it's pretty terrible.

 

It's trailed "beverage - soft drinks" over the past 1, 3, 5, 10 and 15 years by -.85%, -.84%, -2.03%, -1.58%, and -2.69%.

 

It's trailed the S&P 500 over the same periods, -17.52%, -7.31%, -4.96%, -1%, -1.33%. Ouch.

 

15 years is nothing.  It will take at least another 50 years before you can determine whether it has been a good investment or not.  Please put an alert on your calendar to update this post on June 18, 2064.

 

hahaha.

 

I tried to do that in Google Calender but it only let me go out to 2050! :(

Link to comment
Share on other sites

I think most of us know that KO hasn't been a good investment in quite a while. I looked at it again today...and man, it's pretty terrible.

 

It's trailed "beverage - soft drinks" over the past 1, 3, 5, 10 and 15 years by -.85%, -.84%, -2.03%, -1.58%, and -2.69%.

 

It's trailed the S&P 500 over the same periods, -17.52%, -7.31%, -4.96%, -1%, -1.33%. Ouch.

 

That's exactly why Buffett might be open to having someone like 3G shake things up. No idea if it'll happen, but if it can be done, I think it would create a lot of value.

Link to comment
Share on other sites

  • 1 month later...
  • 2 months later...

I think most of us know that KO hasn't been a good investment in quite a while. I looked at it again today...and man, it's pretty terrible.

 

It's trailed "beverage - soft drinks" over the past 1, 3, 5, 10 and 15 years by -.85%, -.84%, -2.03%, -1.58%, and -2.69%.

 

It's trailed the S&P 500 over the same periods, -17.52%, -7.31%, -4.96%, -1%, -1.33%. Ouch.

 

The 10 year chart looks like KO is crushing the S&P 500.

 

http://finance.yahoo.com/echarts?s=KO+Interactive#%7B%22range%22%3A%2210y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22SPY%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%7D%7D

 

Link to comment
Share on other sites

I think most of us know that KO hasn't been a good investment in quite a while. I looked at it again today...and man, it's pretty terrible.

 

It's trailed "beverage - soft drinks" over the past 1, 3, 5, 10 and 15 years by -.85%, -.84%, -2.03%, -1.58%, and -2.69%.

 

It's trailed the S&P 500 over the same periods, -17.52%, -7.31%, -4.96%, -1%, -1.33%. Ouch.

 

The 10 year chart looks like KO is crushing the S&P 500.

 

http://finance.yahoo.com/echarts?s=KO+Interactive#%7B%22range%22%3A%2210y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22SPY%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%7D%7D

 

 

But the 5 year chart shows the opposite.

http://finance.yahoo.com/echarts?s=KO+Interactive#%7B%22range%22%3A%225y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22SPY%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%7D%7D

 

Link to comment
Share on other sites

I think most of us know that KO hasn't been a good investment in quite a while. I looked at it again today...and man, it's pretty terrible.

 

It's trailed "beverage - soft drinks" over the past 1, 3, 5, 10 and 15 years by -.85%, -.84%, -2.03%, -1.58%, and -2.69%.

 

It's trailed the S&P 500 over the same periods, -17.52%, -7.31%, -4.96%, -1%, -1.33%. Ouch.

 

The 10 year chart looks like KO is crushing the S&P 500.

 

http://finance.yahoo.com/echarts?s=KO+Interactive#%7B%22range%22%3A%2210y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22SPY%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%7D%7D

 

 

But the 5 year chart shows the opposite.

http://finance.yahoo.com/echarts?s=KO+Interactive#%7B%22range%22%3A%225y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22SPY%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%7D%7D

 

I know it does.  I was merely correcting an error made in the post that claimed it had underperformed the S&P500 over 10 years.

Link to comment
Share on other sites

  • 1 month later...
  • 2 months later...

 

Wintergreen Advisers Poses Twelve Urgent Questions for Coca‐Cola

 

http://www.wintergreenfund.com/downloads/Wintergreen-CocaCola-PR-20141020.pdf

 

I've followed Winters for years and can't recall him being so aggressive. In any past videos he was very mild mannered - so the "publicity seeking" accusations seem to me to incredibly ignorant.  (Am I wrong on this?) 

 

Anyway, so in viewing the video, this now seems to be getting very interesting. The video gets quite interesting at the end.  (I wonder if it's just a major screw up on Coke's part or deliberate, or just business as usual.) 

 

Most importantly, the way this has come to light highlights the need for small investors to be very wary of executive compensation share issuance provisions that are buried in documents.

 

 

Coke hiding secret shares?

Feb. 06, 2015 - 7:12 - Wintergreen Advisers CEO David Winters argues Coke is hiding secret bonus shares in their public statements.

 

http://video.foxbusiness.com/v/4036136305001/coke-hiding-secret-shares-/?#sp=show-clips

 

Institutional Investor David Winters Accuses Coke of Illegality

Posted By: Mark MelinPosted date: February 06, 2015

 

"Wintergreen called on Coca-Cola to immediately claw back any secret bonus shares that have been granted and to pledge that none will be issued in the future. Wintergreen also requested the resignation of all board members, management and consultants or advisers who assisted in the 2014 Equity Plan debacle."

 

"...One area in which we believe the Board failed utterly to protect shareholders’ interests is the introduction of secret “bonus shares.” Although Coca-Cola’s 2014 Proxy Statement contained only one ambiguous reference to these secret bonus shares, under the 2014 Equity Compensation Plan, Coca-Cola’s Compensation Committee may award secret unrestricted bonus shares that are not tied to any performance goals. We believe:..."

 

"...In fact, the only reference to secret bonus shares in the 2014 Proxy Statement appears on page 87, when discussing the types of awards that may be granted under the plan: “…other stock-based awards, in the discretion of the Compensation Committee, including unrestricted stock grants.” [Emphasis ours]. It is far from clear to us what the term “unrestricted” means in this context. We think a shareholder could closely read the 2014 Proxy Statement and still not realize that the Compensation Committee could award secret bonus shares. In fact, shareholders would have to venture all the way to page 14 of the 2014 Equity Plan Agreement itself to fully appreciate the vast discretion afforded to the Board under the 2014 Equity Plan. "

 

http://www.valuewalk.com/2015/02/institutional-investor-david-winters-accuses-coke-illegality/

Link to comment
Share on other sites

  • 2 weeks later...
  • 3 weeks later...
  • 5 months later...

I've been reading Coca-Cola's annual reports from the 1980's, trying to see what Warren Buffett found so compelling that he placed nearly 25% of Berkshire Hathaway's net worth into the stock.  The 1988 report is particularly eye opening and fun to read.  I've posted it at the link below, for any Buffett/Coke history buffs:

 

http://healthywealthywiseproject.com/2015/09/what-did-warren-buffett-see-in-coca-colas-1988-annual-report/

 

(hopeful the pdf viewer will work with your web browser)

 

I can't think of a current company which is better positioned for profits than Coke was in the late '80's. 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...