This Warren Buffett Stock Just Raised Its Guidance
Few companies have stronger brands than beverage giant Coca-Cola (NYSE: KO). Warren Buffett has known this for decades. Buffett's Berkshire Hathaway still owns around $25 billion worth of Coca-Cola stock, and it hasn't sold a single share since Buffett first invested in the late 1980s.
Well-known and beloved brands are valuable assets in times of elevated inflation. People are less likely to trade down when faced with rising prices at the grocery store if they like the brand. In the second quarter, Coca-Cola was able to leverage this pricing power to grow revenue and earnings. The company did so well, it boosted its guidance for 2023.
Coca-Cola grew revenue by 6% year over year in Q2. Excluding the effect of currency, acquisitions, and divestitures, organic revenue was up 11%.
Source Fool.com
