Warren Buffett’s 2023 Portfolio: Top 5 Stock Picks

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

Number of Hedge Fund Holders: 58

Warren Buffett’s Berkshire Hathaway’s Holdings: $24,812,000,000

Percentage of Warren Buffett’s Berkshire Hathaway’s Portfolio: 7.63%

On April 26, Barclays increased the price target on The Coca-Cola Company (NYSE:KO) from $72 to $73 and assigned the stock an Overweight rating. The development took place after the company reported better-than-expected Q1 2023 results. Analysts saw the result as a strong start for the company for 2023. The Coca-Cola Company (NYSE:KO) has been able to gain market share in various product categories across numerous regions. Barclays analysts expect the company to have a favourable setup for the next one to two years as inflation has started to cool down.

The Coca-Cola Company (NYSE:KO) was discussed in the Q4 2022 investor letter of Rowan Street Capital. Here’s what the firm said:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”