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It’s pointless to ask this question.
Have you ever consumed Coca-Cola?
Everyone has
Coca-Cola has grown to be one of the most well-known brands in the world.
You will almost definitely be able to find a banner with the Coca-Cola logo on it no matter where you go in the planet.
Coca-Cola has been around since the early 1900s, and we’re currently drinking it.
It still has the same flavour. It seems to be the same. Is also known by the same name. And, for some reason, it hasn’t lost its ‘cool’ factor.
Every day, Coca-Cola serves 1.7 billion people (the population of the world is around 7.5 billion).
What is the most widely used English word on the planet? It’s “okay”
Second?
It’s Coca-Cola
Can you think of a product that is popular today and was popular in the 1930s?
There aren’t many.
Mountain Dew, Red Bull, Fanta, Thumbs Up, and Pepsi are only a couple of the rivals. Coca-Cola has never been able to be dethroned.
The Coca-Cola product isn’t especially noteworthy in and of itself. It mainly consists of sugary soda water.
Despite this, it is sold in over 200 countries. Almost every country on the planet.
Around $4 billion is spent on advertising and promotions by the firm. For compare, Apple spends “only” around $2 billion.
Coca-Cola says that its formula is top-secret, and that it is held in a high-security vault that is inaccessible to the general public.
That appears to be a marketing technique.
And that may be true
Since a similar brown-black cola drink is sold by a number of Coca-Cola rivals in various parts of the world.
None of them, however, has been able to gain traction.
Coca-Cola operates by selling packaged products to various parts of the globe. Alternatively, it provides the syrup that is used to produce Coca-Cola in various parts of the world.
So, the formula isn’t exactly top-secret; it tastes a lot like sugar water, has no discernible health benefits, and doesn’t get you drunk like alcohol does.
Why haven’t other beverage companies been able to successfully compete with Coca-Cola?
Coca-Cola is doing something that no one else can (obviously).
And that anything is a pair of words with a dull ring to them: distribution network.
So, why don’t the others do the same?
At the very least, they’re attempting. They’re putting in a lot of work.
It takes time to do something like this. Coca-Cola has had a lot of time.
Coca-Cola has spent a lot of money over the years expanding its global network.
The network that has developed is so large that replicating it in just a few years is virtually impossible.
You may have worked out where this is heading.
If you give your investments time, they will grow far larger. And if you don’t, they’ll have a hard time keeping up.
Benefits of Starting your Investments at early age
Starting late makes it very difficult to develop a huge capital structure. It becomes virtually impossible after a certain point.
Let’s say you start investing Rs 20,000 per month and get a 12 percent return.
When you’re 60 years old, how much money do you have?
You’ll have Rs 3.8 crores if you start at the age of 35.
You’ll have Rs 7.1 crores if you start at the age of 30.
You’ll have Rs 13 crores if you start at the age of 25.
Reread what you just read. Take a look at how much more time makes a difference.
If you want to start at 35 and end up with Rs 13 crores with the same return, you’ll need to spend Rs 70,000 per month.
This isn’t to suggest you’ll get that kind of return. It’s to stress the value of long-term work.
And it’s not all about funds or cola distribution networks. Reputation, knowledge, relationships, wellness… all take time to build. Play for the long haul.
This Coca-Cola version also has another obvious takeaway for investors. It has a moat around it.
Coca-Cola has a distinct advantage over the competition. As a result, Coca-Cola is in a much better position to survive and prosper than its competitors.
If you’ve spent some time reading about Warren Buffett’s philosophy, you’ve probably come across the idea of moats.
