The Coca-Cola Company

“Coca-Cola is structurally one of the best businesses ever built — an unreplicable brand, a perpetual trade secret, a 200-country bottler moat, and 63 consecutive years of dividend growth — but at 23x forward earnings with a 65% payout ratio and minimal reinvestment runway, the expected 10-year return of ~6-8% CAGR is insufficient compensation for a long-term equity investor with alternatives; the business deserves to be owned at the right price, and that price is approximately $65-70, not $81.”