Why Coca-Cola Ended Today As the Dow's Best Performer

Geopolitical issues hurt the major indexes today and nearly every stock within them.

Mar 3, 2014 at 9:00PM
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With news that Russia has boots on the ground in Ukraine, investors are fearful about what could happen next. That's a big part of why the three major U.S. indexes all ended the day much lower than where they started. The Dow Jones Industrial Average (DJINDICES:^DJI) lost 153 points, or 0.94%, while the S&P 500 dropped fell 0.74% and the Nasdaq declined 0.72%.

Things weren't a whole lot better for individual stocks, as not a single Dow component ended the session in the black. Coca-Cola (NYSE:KO), down 0.21%, lost the least of any Dow stock, possibly getting a boost from Warren Buffett. The Oracle holds a stake in Coke, and he said this morning that even though the company is under more pressure than it's been in a long time, he will still probably hold shares for the next five years. That was sure to have turned heads in a time when Coke has struggled to grow revenue as volumes decline within its key market of North America.

Coke's recent move to take a 10% stake in Green Mountain Coffee Roasters (NASDAQ:GMCR) divided investors, with some seeing Coke grasping at straws and others seeing the potential for an eventual shakeup the home brewing industry. Those forward-looking investors may have gotten some validation this morning, when a Barclays analyst downgraded shares of SodaStream (NASDAQ:SODA) from "overweight" to "equal weight" and reduced the price target from $55 down all the way to $40 -- barely higher than today's $39.04 close. The analyst cited new competition as a big concern, and given Coke and Green Mountain's plans to make a cold-beverage machine, I think the analyst was indirectly taking a bullish stance on Coke's new venture.

Between Buffett and Barclays, Coke investors appear to have reason for optimism moving forward.

As for the events in Ukraine, the prospect of war means the markets could falter in the short term, as they did today. And while the events bear watching, they shouldn't affect your investment strategy. Don't focus on how much you'll lose and when you should sell. If anything, a market dip may present an opportunity to buy stocks at a discount. As always, stay focused on the long term.

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Matt Thalman owns shares of Berkshire Hathaway and Coca-Cola. The Motley Fool recommends Berkshire Hathaway, Coca-Cola, Green Mountain Coffee Roasters, and SodaStream and owns shares of Berkshire Hathaway, Coca-Cola, and SodaStream. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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