Warren Buffett first invested in Coca-Cola (NYSE:KO) in 1988 for a simple reason. While Coke was already a universal brand in North America and parts of Europe, it had yet to fully reach its potential internationally, particularly in emerging markets. In the years after Buffett's purchase, Coke went on to be a huge winner for Berkshire Hathaway (NYSE:BRK-B), racking up multibagger returns.
Matt sees the same potential in Starbucks (NASDAQ:SBUX),whose addictive products and ubiquitous stores have yet to meet their full worldwide potential, including in markets like China, where Starbucks expects to triple its store count over the next few years. Could investing in Starbucks today deliver the same kind of returns that Buffett enjoyed with Coke? Watch today’s video to get Matt's full take.
Starbucks isn't the only American company set to dominate on the world stage. Profiting from our increasingly global economy can be as easy as investing in your own backyard. Our free report "3 American Companies Set to Dominate the World" shows you how. Click here to get your free copy before it’s gone.
Matthew Argersinger owns shares of Berkshire Hathaway and Starbucks and has the following options: long JAN 2014 $80 calls on Berkshire Hathaway and short JAN 2013 $48 puts on Starbucks. The Motley Fool owns shares of Berkshire Hathaway, McDonald's, and Starbucks and has the following options: short JAN 2013 $47.00 puts on Starbucks. Motley Fool newsletter services recommend Berkshire Hathaway, McDonald's, Starbucks, and The Coca-Cola Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
More from The Motley Fool
What Does Warren Buffett Really Think About Stock Prices Today?
The billionaire investor's actions aren’t as bullish as his words.
Meet the 2 Candidates Who Could Take Warren Buffett's Place
Berkshire recently narrowed down its future CEO candidates to just two people.
3 Under-the-Radar Stories in the Stock Market Last Week
Branded consumer staples aren't what they used to be, the rise of robot investors, and Berkshire Hathaway takes one step closer to implementing its post-Buffett succession.