Income investors might like Wells Fargo & Co (NYSE:WFC) with its capital plan. For full year 2013, the bank estimates to spend more money than 2012 to buy back its shares. If Wells Fargo & Co (NYSE:WFC) spent the equivalent amount of money like last year, of $4 billion, for share repurchases, the repurchase yield could be around 1.7% at its current price. It is trading at $44.50 per share, with the total market cap of $235.6 billion. The market values Wells Fargo & Co (NYSE:WFC) at 1.57 times its book value. The dividend yield comes in at 2.80%.
The Coca-Cola Company (NYSE:KO) has also been a favorite long-term stock for investors with its marvelous concentrates. It has a long operating history dated back to 1886, having more than 500 beverage brands in more than 200 countries. The Coca-Cola Company (NYSE:KO) has become the global product for all walks of life, from the rich to the poor, from a billionaire to farmer. It has a global leading position with nearly 42% market share, while PepsiCo, its closet competitor, has only around 30% of the market. Other non-alcoholic ready-to-drinks (NARTD) products including Fanta, Sprite, and Del Valle are also the leaders in their markets.
In the second quarter, The Coca-Cola Company (NYSE:KO) reported sluggish results, due to the “challenging global macroeconomic environment and unusually poor weather conditions in the quarter.” Despite the recent not-so-good quarter, the company sticks to its 2020 Vision. Its Chairman and CEO, Muhtar Kent, remained bullish in the large NARTD market of 585 million, 37% under the age of 21 and more than 18 million in the emerging middle class.
By 2020, the company expects to double its system revenue with higher margins. The number of servings is estimated to double to more than 3 billion a day, equivalent to around 3%-4% annual volume growth. It is trading at around $40.20 per share, with a total market cap of $178.3 billion. The market values Coke at as much as 15 times its trailing EBITDA.
My Foolish take
Berkshire Hathaway Inc. (NYSE:BRK.A), under Warren Buffett’s leadership, will still be a great long-term stock for patient investors. With more than 70 diversified great operating businesses, Berkshire Hathaway should deliver decent returns for its shareholders in the future. Long-term common stock investors could also invest in The Coca-Cola Company (NYSE:KO) and Wells Fargo & Co (NYSE:WFC), due to their global market leading positions, decent profitability, and potential growth.
The article A Closer Look at Berkshire Hathaway’s Second-Quarter Results originally appeared on Fool.com and is written by Anh Hoang.
Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola and Wells Fargo. The Motley Fool owns shares of Wells Fargo. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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