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Problems for Coca-Cola $KO, $PEP, $BRK.B

Berkshire Hathaway is having its annual frenzy. Ponder the Bear Case Scenario in this core Berkshire Hathaway Holding even while Warren Buffett thinks its un-American to vote against its management.

Coca-Colas revenues are not as diversified as Pepsi. In any portfolio exercise this is a bad thing. Warren Buffet should understand this point perfectly.

Coca-Cola revenues are 74% sparkling beverages which is slow to no growth. Overall growth is from other drinks products which should speak volumes as to where the growth really is. Cola growth is negative in the USA. Investment in bottling operations is capital-intensive and returns are not accretive to Coca-Cola.

George Gutowski writes from  a caveat emptor perspective