“It would be a big mistake. [Coca-Cola has] got such a wholesome image and cannabis doesn’t. It’s that simple.”
“There’s something in everybody’s mind in the world practically about Coca-Cola…I’m not sure that you would want to muddy that image a little bit.”
To a certain extent, that’s true. Just look at this tweet as an example of wholesome brand image:
— Coca-Cola (@CocaCola) April 5, 2019
Even Warren Buffett Can Make a Mistake
Berkshire Hathaway is Coca-Cola stock’s largest shareholder, but that doesn’t mean that Warren Buffett and Charlie Munger are infallible. They’ve made many mistakes over the years. Those mistakes include investing way too late in Apple and holding onto IBM’s stock for much longer than any rational person would.
Warren Buffett also admitted that he should’ve invested in Amazon earlier.
Warren Buffett is also wrong that Coca-Cola should not get into the cannabis business.
Coca-Cola Overrun by Competition
For decades, Coca-Cola’s stock was king of the mountain. It was driven by a very stable, slow-growing business that had reached into the furthest corners of the world. Coca-Cola, however, stopped innovating.
That allowed competitors to surge ahead of Coca-Cola because they all had a broader view of the market. All the major competitors were making moves into healthier drinks with less sugar and flavored water beverages while Coca-Cola rested on its laurels.
Coca-Cola stock has been playing catch-up as competitors’ stocks have soared. Coca-Cola is been struggling with…