These comparisons with Warren Buffett and his Coke ownership are interesting.
Putting aside Coke for a minute. Warren Buffett has made his money buying companies that he understands, often at times when no one else wanted to, and holding these shares because he believes in the underlying business. He doesn't seem particularly concerned about the stock price of these companies from day to day. If he understands and believes in the business, then he's happy to hold on and possibly pick up additional shares when the price falls.
It seems like a reasonable approach that has worked well for him and I'm sure you wouldn't argue with that.
So getting back to Coke. Do you think that selling soft drinks is something that most people can at least partially understand? Do you think mixing sugar and carbonated water and selling to people is a complex business? At least from a conceptual point of view, to me anyway, it seems far easier to understand than a lot of other businesses. When you think about it like this, then yes I want to replicate his approach to stock selection. Given all the other approaches out there, his seems to be doing the best over a consistent amount of time.
Stock selection and stock valuation are two different things though. In terms of the price of CCL right now, I think that it probably is a little high and perhaps it will go down further, but in the long run, they sell sugar water. It's not a complex business. It's an inexpensive product with a tremendously wide distribution channel that has one of the strongest brand names in the world . I can imagine that people will still be buying soft drinks in 20 years time. Maybe even 50 years time. I am comfortable with this analysis.
So when you jest about people trying to replicate arguably the most successful investor ever and don't offer a better alternative, I just have to laugh to myself. Cause until you prove yourself on a level even remotely close to level of success that he has achieved, until you get to level where people are trying to replicate AnDy62, your opinion, like mine, are worth about the cost of a can of Coke.
CCL Price at posting:
$9.15 Sentiment: Hold Disclosure: Not Held
