The Coca Cola-Share (NASDAQ:NASA) is still on my watch list. Especially in my Better Than Nothing repository, this qualitative flow has a certain weight that can increase in the long run.
But could Coca-Cola stock be the biggest stake in my portfolio? I am skeptical for two reasons. Below, let’s take a look at what could be a brake at this point.
Coca-Cola stake: More investments are possible
Basically, I am of my opinion: yes, the share of Coca-Cola can continue to grow constantly in my portfolio. However, there is probably one main reason for this: more investments. I invest in stocks in the American Beverage Company because I am convinced of the defensive business model, timeless returns and of course dividends. At an admittedly low level on both sides, I like the risk-reward ratio.
A share of Coca-Cola could also work moderately in my portfolio. With some dividend growth, strong overall performance could be possible over the course of years and decades. Personally, I figure with the return in the single-digit mean percentage range in a conservative scenario. In that respect, growth is definitely possible with this post.
But: it’s still a better than nothing scenario. This means that the yield should always be more moderate. I will not focus all of my assets in this stock. No, but also select high quality defensive stocks for this portfolio. However, for me, there is another reason why such a scenario is unlikely given Coca-Cola stock.
The competition is very strong
The Coca-Cola stake has a lot of competition in my portfolio. Better than nothing and high quality dividend stocks add marginally to my overall performance. This means that growth stocks are stronger than this stock. And maybe it should stay that way. With stronger performance, these stocks will probably always be the heavyweights in my portfolio.
Also because I tend to focus more on growing stocks, I think these stocks will always be a big hit in my portfolio. But perhaps the most important finding of the day is this: Qualitatively speaking, Coca-Cola’s share is certainly a defensive footing in my “best of nothing” portfolio. He may not be able to rise to the top post because diversification and overall performance are unlikely to be very strong.
But still: the quality and the possibility to stop my money safely and in the long run also deserve a little more volume for me.
clause Could Coca-Cola’s stake become the largest stake in my portfolio? First appeared in Motley Fall Deutschland.
Vincent owns shares in Coca-Cola. The Motley Fool does not have a position in any of the stocks mentioned.
Motley Fall Deutschland 2021
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