Winning stocks with impressive long-term returns can do more than tantalize investors. They might also guide us to the next great stock. For example, investors in Coca-Cola
Finding the tail on this coat
Established in 1886, Coca-Cola has one of the longest legacies of any American company and one of the strongest brands. Driven by competition from PepsiCo's
If we can nail down some companies profiting from new trends in the consumer drinks market, or creating a widely recognized brand of their own, we might find a hidden treasure worthy of investment. With a giant like Coca-Cola, investors typically follow conventional wisdom, looking only for direct competitors or partners. This might lead to obvious choices including smaller, specialized soda makers Hansen Natural
Motley Fool CAPS can really help us here. The massive Foolish stock database has lots of tools for finding and researching stocks and the people who pick them.
Tagging along with CAPS
With CAPS, investors can look through Coca-Cola's tag list for other companies sporting similar attributes. For instance, Coca-Cola falls under tags such as Beverages - Soft Drinks, Top Brands 2006, and Buffett Stock. In addition, the comments CAPS investors leave regarding rated companies can sometimes lead to similarly attractive investments, whether or not they have a direct connection to Coca-Cola.
These CAPS resources could point investors to one company that is directly connected to Coca-Cola's value chain, South American bottler and Motley Fool Global Gains selection Andina Bottling
CAPS also turns up many companies with a less direct connection to Coca-Cola, including building material supplier USG
Of course, plenty of coattail investments have proved to be mere copycats, ultimately flopping for investors. That's why CAPS is best used as a research tool, not a device to pick stocks for you. Rather than taking anyone else's recommendation, investors should always perform their own due diligence. But you can't beat the information and resources for the price -- namely, 100% free.
Is there another stock you know about that has Coca-Cola's wind in its sails? Give your own opinion in Motley Fool CAPS.
Andina is one of more than a dozen companies selected by the Global Gains newsletter team. To find some of the greatest investment opportunities beyond our borders, check out the service free for 30 days.
Fool contributor Dave Mock has never worn a coat with tails; he prefers the waiter style. He owns shares of Coca-Cola. Dave is the author of The Qualcomm Equation. Coca-Cola, Berkshire Hathaway, and USG are Inside Value picks. Berkshire Hathaway is also a Stock Advisor pick. The Fool's disclosure policy is often imitated but never duplicated.