However, Berkshire's 200-million-share-stake in Coca-Cola (KO) didn't change.
Why?The following are key insights on Coca-Cola from TheStreet.com. From Why Buffett Is Sticking With Coca-Cola: What does the Buffett approach like about Coca-Cola, whose 2,800-plus products include not only Coke but also major brands such as Sprite, Minute Maid, Powerade, Nestea, Dasani and Fanta? A lot. For starters, Buffett has typically seeks out firms that have posted persistent earnings growth over the long haul, and Atlanta-based Coca-Cola's earnings dip this year was its first since 2000 -- and considering the earnings-sapping recession we're in, the 8-cent drop from 2007 to 2008 isn't bad at all. Secondly, Coca-Cola has $5.76 billion in annual earnings, meaning it could pay off its $2.78 billion in debt in less than half a year, if it so chose. That's just the kind of conservative financing that my Buffett-based model prizes. Another reason this model likes Coca-Cola is its management. Read the full version of Why Buffett Is Sticking With Coca-Cola (on RealMoney). From Coke's Stock Opens Happiness for Investors: Investors are more favorable to Coke than they have been. The company's stock has fallen only 5.5% this year, making it the Dow's second-best performer. TheStreet.com Ratings' quantitative model, which examines a company's valuation metrics, financial situation and analysts' consensus expectations of future growth, awards Coke a B-minus, which equates with a "buy" recommendation. With a dividend yield topping 3.5% and priced at a modest 13.8, Coke's reward grade from TheStreet.com Ratings is a B-plus. Its $9.3 billion in debt and price of nearly five times book value hold the firm's risk grade to a C-minus. Read the full version of Coke's Stock Opens Happiness for Investors (TheStreet.com Ratings Report on Coca-Cola).
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV