Berkshire Hathaway Inc. (NYSE:BRK.A) in under the lens of analysts and besides the recent story about International Business Machines Corp. (NYSE:IBM)’s free-falling price, there’s also The Coca-Cola Co (NYSE:KO) that disappoints in terms of growth. According to TheStreet Warren Buffett’s fortune will not get the needed boost this year because of the 3% growth in terms of share value, to a price of almost $43, for The Coca-Cola Co (NYSE:KO).
“Has Warren Buffett’s coke gone flat? […] Certainly looks like it. Coke shares are flat on the year, they’ve only gained about 3% and it’s definitely not boosting Berkshire Hathaway Inc. (NYSE:BRK.A)’s holdings in 2014, one of the biggest positions in Warren Buffett’s portfolio,” informed Jonathan Marino.
Berkshire Hathaway Inc. (NYSE:BRK.A) has a 9.13% stake in The Coca-Cola Co (NYSE:KO) which is approximately $17.19 billion, according to CNBC. This huge investment follows Wells Fargo & Co (NYSE:WFC), which got almost $24.8 billion from Warren Buffet for an 8.93% stake. The Coca-Cola Co (NYSE:KO) does not seem to be able of amazing any time soon as there are a couple of obstacles to be faced in the short term.
“The company’s revenue is also slowing up, which could give investors pause. One place Coke hasn’t been slow is in the M&A [Mergers and Acquisitions] front. It reached into new markets like coconut water with its 2013 buy Zico,” added Jonathan Marino.
However, this seems to be an impression problem as Berkshire Hathaway Inc. (NYSE:BRK.A)’s stock is more than 23% up year to date to a price of $219,000. Most probably, investing in The Coca-Cola Co (NYSE:KO) was meant to hedge any drops in the overall financial market as one can clearly see that the company has been delivering increased dividends and share price. The sole exception to this pattern was the 2007-2008 economic meltdown. Probably, it doesn’t even motivate the billionaire to write a letter to the company’s management to give media something to hype about.
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