Personal finance: the advantages and disadvantages of investing in Coca Cola

  • Nov 29, 2023
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In a context where investment platforms are constantly reinventing themselves so that savers find the best way to move their capital, Coca Cola shares continue to be positioned among the instruments most chosen by people when operating in the markets. That is why, in this note, we will focus on the advantages and disadvantages in this regard.

Without a doubt, recent years have been characterized by the sustained growth of online investments in all parts of the world. Whether we are talking about investors with experience and great management of the basics, or small and medium savers who are taking their first steps, the truth is that Nowadays practically everyone can close and open positions in the markets in just two Steps.

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This has led to great growth in many markets. Perhaps the best known case is that of cryptocurrencies, which have achieved a scenario of unusual expansion in very few years, reaching the daily economy of millions of people in the region.

Now, this is not the only case and we can also talk about the traditional Stock Exchange, which has managed to reach many people thanks to the investment platforms that make everything much easier when operating in the investment market. Actions.

Do you find yourself thinking about invest in Coca Cola? Of course you are not the only one and many people are also in this position, since it is one of the most recognized brands worldwide. Below are the advantages and disadvantages of leaning towards this instrument.

Advantages:

1 – Favorable track record: When choosing a stock, taking into account its behavioral history is very important, as it will not only give us a general picture of their performance, but will also allow us to know in depth what their cycles of decline and growth have been, helping to recognize their volatility.

In the case of Coca Cola, its favorable history places it among the most coveted assets worldwide, as it gives it a context of predictability in an always volatile market. We will return to this point later in this article.

2 – Dividends: Without a doubt, dividends are another of the great attractions of Coca Cola shares, since they allow the investor to project passive profits every certain periods of time. This custom of the soft drink firm is one of the most valued in the market at a general level.

3 – Expansion: On the other hand, the Coca Cola firm is always expanding. Whether we talk about landing in new markets or launching new products, the growth of the firm pushes the value of the shares with it, which allows it to always think positively even in unusual contexts. favorable.

4 – Innovation: Finally, Coca Cola is synonymous with the avant-garde within the field of beverages and food, always developing products that raise the bar in terms of flavor and presentation. This is always received with enthusiasm by the markets, so again there is a positive factor to consider.

Disadvantages:

1 – Volatility: Although, as we have mentioned, the Coca Cola firm is stable and solid internationally, its shares continue to be under the logic of the market, which leads to large price variations being found in short periods of time. time.

This may not be desired for investors with a very conservative profile and with a high risk aversion, so taking the time to evaluate this asset can be an excellent first investment. How much fluctuation is desirable?

2 – Changes in habits: Finally, on a more social and general level, we can talk about changes in habits on the part of customers and users, where Coca Cola's flagship drink has been put under the magnifying glass. Although the firm has launched new and revised products, this point may be important in the future.

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