Coca-Cola a traditional holding for Warren Buffett will be reporting earnings soon. Ponder this Bear Case Scenario and see if Warren Buffett still has it right when it comes to Coke.
Coca-Cola is a global consumer products business firmly rooted in commodities. Coca-Cola will frequently win the product marketing wars. They currently control approximately 80% of North American distribution with lower accretive margins.
Commodities that can yank Coca-cola`s chain are sugar, orange juice and cocoa. Investors do not view Coca-Cola through the prisim of commodities and can easily be blind sided.
Warren Buffett`s genius does not extend to commodities. He is not a trader. If Buffett or his successors lose faith or re-assess their view on coca-cola much of the long case will be undersiege.
Fizzy water. You never know when something will go up your nose.
George Gutowski writes from a caveat emptor perspective.