KO The Coca-Cola Company

Valuation

Big Five 7/15 tests ≥10%

Discussed on InvestED 8 episodes

• 082 · Back to Basics: Finding the Moat (Part 3)
  Real estate and businesses share the same financial statements and the same question about moats; the hosts then work through Coca-Cola, Wells Fargo and 21st Century Fox, disagree about whether Fox has a toll bridge, and conclude that a business that is too hard goes in the too-hard pile.
• 080 · Back to Basics: Finding the Moat
  Before judging the moat, do a bit of scuttlebutt (talk to people, read the critics and rivals) so you can understand the business, then recognise six kinds of moat (brand, toll bridge, price, switching, secrets, network effect), remembering that every moat can be breached and a company may have more
• 269 · Company Checklist: What To Do in an Uncertain Market
  Phil and Danielle define investing as certainty (buying a $10 bill for $5), then review the Radar, Meaning and Moat parts of Phil's checklist, adding the last four moat items: the "problem if it disappears" test, pricing power, and recurring sales.
• 044 · Understanding Chipotle's Value (Part 2)
  Phil argues you should let your values veto a purchase (without paying extra for virtue), then starts valuing Chipotle with four inputs, beginning with trailing EPS and an earnings growth rate that he stress-tests against store counts.
• 096 · JJ Virgin on The Miracle Mindset (Part 1)
  In a guest interview with the health author JJ Virgin, Phil and Danielle explore the idea that mindset is a muscle you can build, with a simple daily gratitude practice as the starting point. It matters to an investor because fear and resilience decide how you behave when prices fall.
• 257 · Checklist: The Importance of Understanding The Moat
  Phil and Danielle go through the first items of the ten-point Moat checklist: critical parts of the operation, ease of selling, whether customers and suppliers love or need the company, and the three tests of a competitive advantage (is it real, durable, and intrinsic).
• 395 · Riding the Backwards Bike
  Phil argues that investors schooled in modern portfolio theory are stuck in a paradigm like a "backwards bike", that pure buy-and-hold can mean 20 years of nothing, and that three exit styles all depend on the one skill that matters: buying a great business on sale.
• 003 · Finding a Competitive Advantage
  Munger's second filter asks for "intrinsic characteristics" that give a durable competitive advantage. Phil boils these down to five kinds of moat (brand, secrets, switching, toll bridge and price) and shows each with a real company.