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Warren Buffett’s investment in Coca-Cola (NYSE:KO) has been outstanding for Berkshire Hathaway since 1994. And there’s a FTSE 100 stock that I think has a lot of similarities.
It’s Games Workshop (LSE:GAW) – a stock I hold in my portfolio. There’s just one thing that’s holding me back from buying more at the moment, but maybe this is a mistake.
Brand power
The risk with stocks like Coca-Cola and Games Workshop is that nobody strictly needs their products. In other words, there’s no reason people have to buy anything they make.
There’s no disputing this risk, but it hasn’t held Coca-Cola back over the years. The strength of the firm’s brand means customers don’t want to trade down – even at lower prices.
Games Workshop has a similarly strong brand and its intellectual property means its products can’t be copied exactly. Its customer base is loyal,…
