Buffett Says to Smile on Pepsi

This column was originally published on RealMoney on March 5 at 7:05 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

The stock market, like life, can be filled with ironies. Warren Buffett's long-term love affair with Coca-Cola (KO Quote) is well known. His investment vehicle, Berkshire Hathaway (BRKA Quote), has owned Coke stock for decades.

Until last year, Buffett himself sat on Coke's board. But when I look at him, or at least, when I'm using my strategy based on his approach to investing, I see all the bubbles going Pepsi's way. According to my analysis, Coke's archrival PepsiCo (PEP Quote) meets the Buffett strategy's criteria for buying, while Coke has gone flat.

Not surprisingly, things aren't also as simple as black vs. white, or Coke vs. Pepsi. ...