Editing 1course Stock Market (section)

== Case Study 1: Coca-Cola (KO) ==

=== The Investment ===
In 1988, Warren Buffett’s Berkshire Hathaway purchased a significant stake in Coca-Cola, investing $1.3 billion. This investment represented a classic example of Buffett’s belief in buying strong brands with durable competitive advantages.

=== The Rationale ===

# '''Strong Brand:''' Coca-Cola is one of the most recognizable brands globally, creating a significant economic moat.
# '''Consistent Earnings:''' The company had a track record of stable and predictable earnings, fitting Buffett’s criteria for financial stability.
# '''Global Reach:''' Coca-Cola’s extensive global distribution network ensured continued growth and market dominance.

=== The Outcome ===
Buffett’s investment in Coca-Cola has grown exponentially. Today, the value of Berkshire’s stake in Coca-Cola is worth over $20 billion, showcasing the power of long-term investing in strong, profitable companies.

=== Lesson ===
Invest in companies with strong brands, consistent earnings, and global reach. Patience and a long-term perspective can turn a significant initial investment into substantial wealth.