Since 2012, Coca-Cola (KO) stock has traded in the low $40 range. It has hit the upper $30s higher and there, but over 82% of the trading days since the start of 2012 have found the stock essentially treading water in the range of $40 to $45 per share. This lack of capital appreciation has triggered a spate of people wondering whether the welcome trend towards fighting obesity has hampered the growth prospects of Coca-Cola’s flagship products and whether a company selling $42 billion worth of beverages each year is capable of posting respectable growth figures.
Over the past four years, the S&P 500 has delivered returns of almost 14% per year. It sounds crazy, but the collection of business that comprise the S&P 500 has almost doubled your wealth in the past four years as it has turned every $1 invested in January 2012 into $1.85 today. I call … Read the rest of this article!