How Buffett went from picking horses to picking stocks — and what we can learn
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 03 2025
0mins
Source: MarketWatch
Warren Buffett's Early Years: At the age of 11, Warren Buffett was already showing signs of his future success by working as a tipster for horse-racing bettors in Omaha, Nebraska.
Buffett's Unique Skills: He utilized a Royal typewriter to process complex racing intelligence that many adults found difficult to understand, showcasing his early talent for data analysis.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy KO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on KO
Wall Street analysts forecast KO stock price to rise
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 78.600
Low
71.00
Averages
79.33
High
85.00
Current: 78.600
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coca-Cola Shares Drop on Mixed Earnings Outlook
- Holding Status: Berkshire Hathaway has held Coca-Cola for over 35 years, with 400 million shares valued at approximately $30.8 billion as of September 2025, representing 9.4% of its portfolio, indicating long-term confidence in the beverage giant.
- Earnings Performance: Coca-Cola reported Q4 earnings of $0.58 per share on $11.8 billion in revenue, surpassing Wall Street's $0.56 estimate, yet falling short of the $12.05 billion forecast, highlighting a slowdown in sales growth.
- Management Change: CEO James Quincey will depart at the end of March, with COO Henrique Braun taking over, a transition that may unsettle investors, particularly given the company's lowered sales growth expectations.
- Market Challenges: Coca-Cola faces a complicated global trade environment with new sugar taxes and shifting consumer preferences towards healthier options, despite a 10% stock increase year-to-date, indicating potential hurdles for the incoming CEO.
See More
Looking for Stocks Resilient to AI? Consider HALO
- Limitations of AI: AI cannot perform physical tasks such as cooking, delivering packages, or farming.
- Human Dependency: Despite advancements in AI, human involvement is still essential for various everyday activities.
See More
Coca-Cola Named Among Best Roth IRA Stocks to Buy Now
- Price Target Increase: UBS raised Coca-Cola's price target from $82 to $87 while reiterating a Buy rating, indicating that despite a complex quarter, the company's core business remains stable, which is likely to positively impact the stock price.
- Earnings Improvement: Coca-Cola reported a comparable EPS of $0.58 for Q4 2025, reflecting a 6% year-over-year increase despite a 5% currency headwind, showcasing a significant improvement in profitability that may attract more investor interest.
- Market Share Growth: The company has achieved 19 consecutive quarters of value share gains, particularly in the North American market, indicating the successful expansion of its brand and product portfolio, which is expected to further solidify its market position.
- New Product Launches: Coca-Cola has introduced new products such as Sprite Chill and Coca-Cola Holiday Creamy Vanilla, with management planning to accelerate innovation and integrate digital tools more deeply to engage younger consumers and enhance competitive strength.
See More
PepsiCo Stock Rebounds, Optimistic Outlook Ahead
- Sales Growth Recovery: In Q1 2026, PepsiCo reported accelerated sales growth, improved operating margins, and double-digit EPS growth; despite weak performance in North America, success in Europe, the Middle East, Africa, and Latin America underscores the strength of its global supply chain and marketing.
- Dividend Growth Continuation: PepsiCo unexpectedly raised its annual dividend to $5.92 in its latest earnings report, marking the 53rd consecutive annual increase, with an expected $7.9 billion in dividends for 2026, further solidifying its status as a Dividend King.
- Stock Buyback Initiative: The company announced a $10 billion stock buyback program, with $1 billion planned for fiscal 2026, reflecting management's confidence in future free cash flow growth and commitment to returning more capital to shareholders.
- Enhanced Market Competitiveness: Despite the recent stock price increase, PepsiCo's forward P/E ratio stands at 19.8, notably lower than Coca-Cola's 24.5, indicating that acquisitions in health-conscious and mini meal categories will bolster its market competitiveness and attract more dividend investors.
See More
Coca-Cola Q4 Earnings Beat Expectations, Shares Rise
- Earnings Beat: Coca-Cola reported fourth-quarter adjusted EPS of 58 cents, surpassing the analyst consensus of 56 cents, although quarterly sales of $11.80 billion grew only 2% year-over-year, missing the $12.026 billion expectation, indicating resilience in profitability.
- Revenue Growth Outlook: The company anticipates organic revenue growth of 4% to 5% for fiscal 2026, forecasting adjusted EPS between $3.21 and $3.24, slightly below analysts' estimate of $3.23, reflecting cautious optimism about future growth.
- Analyst Support: BofA Securities analyst Peter T. Galbo reiterated a Buy rating on Coca-Cola with a price target of $85, citing favorable global consumption trends and steady fundamentals, despite pressures from pricing and mix performance.
- Strategic Shift: Coca-Cola's ongoing transition away from bottling and distribution is expected to enhance margins and returns on invested capital over time, with analysts noting that while unit case trends may be soft in the short term, the long-term outlook remains positive.
See More
Consumer Staples ETF Surges, Attracts Investors
- Passive Income Source: The Consumer Staples Select Sector SPDR ETF has surged 13.2% in 2026, significantly outperforming the S&P 500's 1.3% gain, showcasing the fund's strong potential for providing stable passive income, especially during economic fluctuations.
- Stable Dividend Returns: Major holdings in the ETF include Dividend Kings like Walmart, Costco, and Coca-Cola, which have raised dividends for 50 consecutive years, ensuring reliable returns for investors in uncertain economic environments.
- Shifting Market Dynamics: As investors pivot from high-growth sectors to value stocks, the consumer staples sector has emerged as one of the best-performing segments in 2026, reflecting a market preference for stable income despite ongoing pressures from reduced consumer spending.
- Reasonable Valuation: With a price-to-earnings ratio of 24.1 and a solid yield of 2.6%, alongside a low expense ratio of just 0.08%, the ETF, while not as cheap as at the end of 2025, remains a solid foundational holding for risk-averse investors seeking reliable passive income.
See More
Coca-Cola Shares Drop on Mixed Earnings Outlook
- Holding Status: Berkshire Hathaway has held Coca-Cola for over 35 years, with 400 million shares valued at approximately $30.8 billion as of September 2025, representing 9.4% of its portfolio, indicating long-term confidence in the beverage giant.
- Earnings Performance: Coca-Cola reported Q4 earnings of $0.58 per share on $11.8 billion in revenue, surpassing Wall Street's $0.56 estimate, yet falling short of the $12.05 billion forecast, highlighting a slowdown in sales growth.
- Management Change: CEO James Quincey will depart at the end of March, with COO Henrique Braun taking over, a transition that may unsettle investors, particularly given the company's lowered sales growth expectations.
- Market Challenges: Coca-Cola faces a complicated global trade environment with new sugar taxes and shifting consumer preferences towards healthier options, despite a 10% stock increase year-to-date, indicating potential hurdles for the incoming CEO.
See More
Looking for Stocks Resilient to AI? Consider HALO
- Limitations of AI: AI cannot perform physical tasks such as cooking, delivering packages, or farming.
- Human Dependency: Despite advancements in AI, human involvement is still essential for various everyday activities.
See More
Coca-Cola Named Among Best Roth IRA Stocks to Buy Now
- Price Target Increase: UBS raised Coca-Cola's price target from $82 to $87 while reiterating a Buy rating, indicating that despite a complex quarter, the company's core business remains stable, which is likely to positively impact the stock price.
- Earnings Improvement: Coca-Cola reported a comparable EPS of $0.58 for Q4 2025, reflecting a 6% year-over-year increase despite a 5% currency headwind, showcasing a significant improvement in profitability that may attract more investor interest.
- Market Share Growth: The company has achieved 19 consecutive quarters of value share gains, particularly in the North American market, indicating the successful expansion of its brand and product portfolio, which is expected to further solidify its market position.
- New Product Launches: Coca-Cola has introduced new products such as Sprite Chill and Coca-Cola Holiday Creamy Vanilla, with management planning to accelerate innovation and integrate digital tools more deeply to engage younger consumers and enhance competitive strength.
See More
PepsiCo Stock Rebounds, Optimistic Outlook Ahead
- Sales Growth Recovery: In Q1 2026, PepsiCo reported accelerated sales growth, improved operating margins, and double-digit EPS growth; despite weak performance in North America, success in Europe, the Middle East, Africa, and Latin America underscores the strength of its global supply chain and marketing.
- Dividend Growth Continuation: PepsiCo unexpectedly raised its annual dividend to $5.92 in its latest earnings report, marking the 53rd consecutive annual increase, with an expected $7.9 billion in dividends for 2026, further solidifying its status as a Dividend King.
- Stock Buyback Initiative: The company announced a $10 billion stock buyback program, with $1 billion planned for fiscal 2026, reflecting management's confidence in future free cash flow growth and commitment to returning more capital to shareholders.
- Enhanced Market Competitiveness: Despite the recent stock price increase, PepsiCo's forward P/E ratio stands at 19.8, notably lower than Coca-Cola's 24.5, indicating that acquisitions in health-conscious and mini meal categories will bolster its market competitiveness and attract more dividend investors.
See More
Coca-Cola Q4 Earnings Beat Expectations, Shares Rise
- Earnings Beat: Coca-Cola reported fourth-quarter adjusted EPS of 58 cents, surpassing the analyst consensus of 56 cents, although quarterly sales of $11.80 billion grew only 2% year-over-year, missing the $12.026 billion expectation, indicating resilience in profitability.
- Revenue Growth Outlook: The company anticipates organic revenue growth of 4% to 5% for fiscal 2026, forecasting adjusted EPS between $3.21 and $3.24, slightly below analysts' estimate of $3.23, reflecting cautious optimism about future growth.
- Analyst Support: BofA Securities analyst Peter T. Galbo reiterated a Buy rating on Coca-Cola with a price target of $85, citing favorable global consumption trends and steady fundamentals, despite pressures from pricing and mix performance.
- Strategic Shift: Coca-Cola's ongoing transition away from bottling and distribution is expected to enhance margins and returns on invested capital over time, with analysts noting that while unit case trends may be soft in the short term, the long-term outlook remains positive.
See More
Consumer Staples ETF Surges, Attracts Investors
- Passive Income Source: The Consumer Staples Select Sector SPDR ETF has surged 13.2% in 2026, significantly outperforming the S&P 500's 1.3% gain, showcasing the fund's strong potential for providing stable passive income, especially during economic fluctuations.
- Stable Dividend Returns: Major holdings in the ETF include Dividend Kings like Walmart, Costco, and Coca-Cola, which have raised dividends for 50 consecutive years, ensuring reliable returns for investors in uncertain economic environments.
- Shifting Market Dynamics: As investors pivot from high-growth sectors to value stocks, the consumer staples sector has emerged as one of the best-performing segments in 2026, reflecting a market preference for stable income despite ongoing pressures from reduced consumer spending.
- Reasonable Valuation: With a price-to-earnings ratio of 24.1 and a solid yield of 2.6%, alongside a low expense ratio of just 0.08%, the ETF, while not as cheap as at the end of 2025, remains a solid foundational holding for risk-averse investors seeking reliable passive income.
See More
