February 10, 2012

How We Used Shares of Coca-Cola to Teach My Youngest Sister About Investing (and Why the Cycle of Consumption and Financial Stress Starts as a Teenager for Most Americans)

Coca-Cola Direct Stock Purchase Plan and Coca-Cola Dividend Reinvestment Plan or Coke DRIP Literature

When I was a senior in high school, I bought my youngest sister, who was first grader at the time, a single share of Coca-Cola common stock for her 6th birthday.  I had it framed with an engraving of the first part of Deuteronomy 8:18 placed under it, "You shall remember the Lord your God, for it is he who gives you power to get wealth". I registered the ownership as a uniform gift to minors, naming our father as the trustee.  He and my mom decided to have $50 each month taken out of their … [Read more...]

How My Grandpa Dennis Could Have Turned His Pepsi Habit Into a 7-Figure Estate

Pepsi Cola Stock

I've written in the past about how nearly every American alive today has been confronted with perhaps a dozen different companies that they knew first hand because they enjoyed using the firm's products for years (in some cases, their whole life) that turned out to be spectacular investments.  Yet, they never thought to research the business and consider becoming an owner. One of the things I think about a few times a year is my paternal grandfather's Pepsi habit.  My dad's side of the … [Read more...]

Sun Trust Bank and the Coca-Cola Stock

Coca-Cola and the SunTrust Bank Underwriting Fee

I'm reading the Sun Trust annual report and I realized that many, if not most, of you are probably unaware of the Sun Trust connection to Coca-Cola and how it gave rise to one of the greatest investments in history.  (As many of you know, we used the Coca-Cola direct stock purchase plan and dividend reinvestment plan to teach my youngest sister about stocks when she was a child.) When Coca-Cola went public in 1919, the underwriting was handled by two institutions, one connected to J.P. … [Read more...]

Mexican Coca-Cola vs. American Coke

Mexican Coca-Cola with Real Sugar Cane

Other than gourmet coffee, my favorite beverage in the world is an ice cold glass of Coca-Cola.  Of course, not only is the product great, but my love for business causes me to appreciate the nectar of the gods in far more ways than the average person could appreciate.  When I look at a bottle of Coke, I see the company going public in 1919 at $40 per share before crashing to $19 per share.  I also see that today, with dividends reinvested, a single share of Coca-Cola has grown into more … [Read more...]