Warren Buffett doing it, doesn’t necessarily make it right for you…

Buffett with Obama

The oracle of Omaha has only to be seen blowing his nose and Kimberly-Clark stock starts to rally.

It will come as no surprise to anyone that Coca Cola’s price  moved slightly higher at the end of the day’s trading session on New York yesterday: a full 0.16 of a per cent! woopdi do!

Warren Buffett is a renowned soda lover and recently stated that he is 25% Coke as a quarter of his calorific intake is attributed to his daily consumption of the fizzy water, sugary beverage we know so well.

With a stock such as Coke KO (NYSE), investing is not as much about making money from it as it is about not losing money from it.

With vast holdings under their umbrella Berkshire Hathaway spends as much time and resources on preserving equity as it does accumulating it and with a 9.3%, $17 billion USD, stake in the soda company Buffett is not planning his retirement portfolio around what is made from Coca Cola and neither should anyone else.

“Get to the point!”, I hear you saying.  Well, we are almost there now. The strategy employed by any seasoned VC or hedge fund, bank or stock market guru, etc. is to make a profit first and foremost, then set about keeping hold of it.

Once the investment capital is safely squared away in a safe place, such as KO (NYSE), the job of the holder is to expand upon it and make it grow… therein lies the problem for 99.9% of investors, as they haven’t a fish’s tit of an idea what to do next.

This is where I come to my point:

In 2013 I made money on the acquisition of Cymer, Inc. by ASML. It was among the sexiest as it delivered premiums for better than those around at the time.

The chart for ASML clearly states a strong twelve months, and there is more to come from this behinds the scenes pick and shovel tech stock.

Further updates will be given on this in the few short weeks to come, and I will gladly give you a heads up once I have all my ducks in a row.

Until then, keep your powder dry Coke lovers and I’ll be back in a day or two with further gems from the murky carbonated waters of Wall Street and beyond.

Enjoy your week

Global Investing