5 Best Value Stocks to Buy According to Warren Buffett

2. The Coca-Cola Company (NYSE:KO)

Buffett is not only an ardent investor in The Coca-Cola Company (NYSE:KO), but also a devoted guzzler of its sodas, telling Fortune in 2015 that Cola-Cola accounts for about 25% of his daily caloric intake. Berkshire has owned Coca-Cola shares for over three decades and boasted ownership of an even 400 million of them as of September 30. That number isn’t likely to decline any time soon, as Buffett has been saying for years that he will never sell a single share.

Even as soda sales are generally slipping in developed markets and KO’s revenue slid by over 25% between 2015 and 2018, Coca-Cola has become a more profitable company than ever, with net margins hitting 24% in 2019 and has one of the most valuable brands in the world. Return on equity was just shy of 50% last year and Coke’s 27x P/E is the lowest it’s been in four years.