Buy Coca Cola Stock Or No

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Buy Coca Cola Stock Or No

Should You Invest In Coca-Cola (Ko) Stock?

Coca-Cola (KO) is a big name with its presence all over the world. As per the available data, the products of Coca-Cola (KO) are sold in 200+ countries.

According to Management, they have 30 brands and each of them brings more than $1 billion in sales. So yeah, Coca-Cola (KO) is a pretty big name, and that's why it is also a part of Warren Buffett's portfolio.

Coca-Cola Is Around For More Than 100 Years

But, can you become a millionaire if you invest $10K into the Coca-Cola (KO) stock? That's a key question that comes to mind when we look at a big brand like Coca-Cola (KO).

For starters, Coca-Cola (KO) is a very strong brand, and they have consumers all over the globe. Looking ahead, it will stay like that as Coca-Cola (KO) has been around for more than 100 years!

One of the biggest strengths of Coca-Cola (KO) is its brand, and that's what gives it pricing power. This allows Coca-Cola (KO) to offset any weakness in volume growth with higher prices.

The business itself is also very profitable, and Coca-Cola (KO) has figured everything out. They use 3rd party bottles as well as distributors to move the soft drinks.

This business structure allows Coca-Cola (KO) to run an efficient operation. That's why Coca-Cola (KO) has a 26.3% operating margin over the last 10 years.

But, if you want to buy a stock that would make you rich, then Coca-Cola (KO) isn't the right option. In the last 10 years, the Coca-Cola (KO) stock price has increased by 199%. That's actually lower than the S&P 500's return over the last years.

But, there's a real possibility that Coca-Cola (KO) might part ways with the underperformance. The P/E ratio of Coca-Cola (KO) stock is just 24, which means it is available at a discount.

Overall, the Coca-Cola (KO) stock might appeal to investors who want dividends and stability. But, for those who want to get rich, then Coca-Cola (KO) is not the ideal stock.

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