Expanding Empires During Tough Times
RECENT THOUGHTS
On the front page of the WSJ there is an article about Coke betting on sales in Russia.
Another advantage of owning businesses with strong brand names, strong balance sheets, and ample cash flow beyond their capital needs, is their ability to expand their empire when the going gets tough.
Coke, among many of the other businesses we own, continues to expand across the globe and also acquire other businesses at bargain prices as valuations drop. They continue to steal market share through product innovation and marketing, as well as by acquiring new companies and thereby add to their already strong portfolio of brands. They will most certainly come out of this recession/depression stronger than when they entered it!
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. Rather, this commentary is presented solely for the purpose of illustrating YCG’s investment approach. These commentaries contain our views and opinions at the time such commentaries were written and are subject to change thereafter. The securities discussed do not represent an account’s entire portfolio and in the aggregate may represent only a small percentage of an account’s portfolio holdings. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.