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KO, WMT, MCD... You scared?

Posted on 4/1/14 at 10:02 am
Posted by LSUneaux
NOLA
Member since Mar 2014
4490 posts
Posted on 4/1/14 at 10:02 am
You've heard it on the street and on the news. "People are quitting drinking cokes for water, shopping at Walmart for better quality, and eating fast food. "

Is this overblown and too hard too fast, or do these companies have legitimate things to worry about? Would you buy if you don't have them already?
This post was edited on 4/1/14 at 10:03 am
Posted by Cold Cous Cous
Bucktown, La.
Member since Oct 2003
15047 posts
Posted on 4/1/14 at 10:06 am to
quote:

"People are quitting drinking cokes for water"

Coke's profit margin on Dasani brand tap water must be insane.
Posted by Lsut81
Member since Jun 2005
80161 posts
Posted on 4/1/14 at 10:07 am to
quote:

People are quitting drinking cokes for water


Havent had a coke in 2yrs

But doesn't coke own Monster and the other drinks like that?

quote:

shopping at Walmart for better quality, and eating fast food. "


Both of these are tied to how the markets are doing... The moment things hit a snag, you can bet your arse Walmart and McDonalds sales will go up.

Posted by OnTheBrink
TN
Member since Mar 2012
5418 posts
Posted on 4/1/14 at 10:07 am to
I bought it several weeks ago

And my reaction after hearing the news...
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 4/1/14 at 10:24 am to
quote:

Is this overblown
Yes.
Posted by Feed Me Popeyes
Baltimore, MD
Member since Apr 2008
2104 posts
Posted on 4/1/14 at 10:28 am to
Since all three are the best companies in the history of the world in their respective areas, I will continue to buy all three. Read about Warren Buffett's belief in "wide-moat" stocks and you'll feel better too

Also remember that companies such as these typically derive a large portion of their revenue from international markets. These days, poor people abroad are generally coming out of poverty, so that's likely where future growth will come from
This post was edited on 4/1/14 at 10:29 am
Posted by brgfather129
Los Angeles, CA
Member since Jul 2009
17101 posts
Posted on 4/1/14 at 10:53 am to
quote:

"People are quitting drinking cokes for water, shopping at Walmart for better quality, and eating fast food. "


Is this even true...that's an honest question.
Posted by TheIndulger
Member since Sep 2011
19239 posts
Posted on 4/1/14 at 10:53 am to
quote:

But doesn't coke own Monster and the other drinks like that?


Maybe some other energy drinks, but Monster has it's own stock (MNST)
Posted by LSUneaux
NOLA
Member since Mar 2014
4490 posts
Posted on 4/1/14 at 11:38 am to
It's a good point made about international growth being the future. It was just food for thought about these three slowing down domestically.

Emerging poor countries probably aren't health conscience anyway, so they would be good candidates for fast food expansion. 6.5 billion people don't live in the U.S. And Canada - something to think about.
This post was edited on 4/1/14 at 11:39 am
Posted by donRANDOMnumbers
Hub City
Member since Nov 2006
16909 posts
Posted on 4/1/14 at 12:13 pm to
just bought another 110 shares of KO. simply because of your post.

eta: would have bought more but don't have the cash right now in ST. :OTPOOR:
This post was edited on 4/1/14 at 12:14 pm
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 4/1/14 at 12:19 pm to
quote:


Coke's profit margin on Dasani brand tap water must be insane.


Uncle formerly was a VP for Coca Cola and said that their profits on water alone makes them a rich company. Said they basically just take tap water and put plastic around it.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 4/1/14 at 12:21 pm to
quote:

Uncle formerly was a VP for Coca Cola and said that their profits on water alone makes them a rich company. Said they basically just take tap water and put plastic around it.

I've heard Coke's secret formula for their bottled water is kept in in a bank vault in Atlanta.

ETA: Full disclosure, Warren Buffett and I combined own over 400 million shares of KO.
This post was edited on 4/1/14 at 12:33 pm
Posted by donRANDOMnumbers
Hub City
Member since Nov 2006
16909 posts
Posted on 4/1/14 at 12:21 pm to
quote:

Said they basically just take tap water and put plastic around it


this is why you don't buy "purified" water; we only get fresh spring water. though i'm sure we are are getting screwed somewhere along the line.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37115 posts
Posted on 4/1/14 at 12:48 pm to
quote:

ETA: Full disclosure, Warren Buffett and I combined own over 400 million shares of KO.


LOL.

Anyone else on here read Warren's annual letters? They are must read for me within 24 hours of their release each year.
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