The Inevitability of Coca-Cola’s Monster Energy Buyout

Marty Whitman, the successful investor and author of “The Aggressive Conservative Investor”, recommended investing in companies that were profitably growing in their own right but also had the high probability of being acquired by a larger firm in the industry.

The attractiveness of this philosophy is that you can have a few holdings in your portfolio that stand to gain from a one-time bump of 37% in addition to receiving returns fueled by the earnings growth in the interim.

The awareness of this type of flavor to one’s investing strategy is generally most actionable when you are considering businesses that you would independently own in their own right even if not accompanied by the promise of an eventual buyout.

I imagine some form of this strategy animates at least a portion of the shareholder base for Monster Beverages stock, most famous for selling drinks under the same name (although its Read the rest of this article!