With an overabundance of stock advice and opinions about this or that equity out there, it can be tough to sort through the noise. Does that talking head really think that ultra-risky turnaround story is a double? If so, how do you know?
To really get a handle on how someone feels about a stock, you've got to go to where the rubber meets the road: his or her portfolio. That's why I'm going to go into some of the stocks I've thrown my conviction behind and bought for myself.
First up are beverage titans Coca-Cola
You'd think that with soda consumption in a decline in North America, these companies would be the last place to throw your money, but they are much more than just their namesake brands. Though their flagship brands do command a tremendous amount of value, what you're really buying here are less-visible economic moats: distribution systems.
These companies have become so masterful at getting goods from point A to point B that they hold the keys to the beverage kingdom. When smaller beverage companies want to go big-time, it's Coke and PepsiCo's door they go knock on. Despite huge growth, even energy drink maker Monster Beverage
Because the networks each company has developed are prohibitively expensive for competitors to re-create, I don't see this balance of power changing. Their acquisitions of bottlers in recent years only adds to their position as well. Throw in each company's market-beating almost 3% dividend yield, and you've got two set-and-forget companies for the long haul.
Another more risky but potentially lucrative position of mine is Wells Fargo
You can add any of these companies to your Watchlist and see how they play out in the long term before deciding if you'd like to take out positions yourself. Just use the links below to get started today. Fool on!
Austin Smith owns shares of Coca-Cola, PepsiCo, and Wells Fargo. The Motley Fool owns shares of Coca-Cola, Starbucks, Wells Fargo, and PepsiCo. The Fool owns shares of and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services have recommended buying shares of Monster Beverage, Starbucks, PepsiCo, Wells Fargo, and Coca-Cola. Motley Fool newsletter services have recommended writing covered calls on Starbucks and creating a diagonal call position in PepsiCo. The Motley Fool has a disclosure policy.
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