Image source: The Motley Fool
On 9 November, Warren Buffett posted his annual letter to Berkshire Hathaway shareholders — his final one before retiring at the end of the year.
Rather than the usual company update, it was a poignant testament to the legendary investor’s enduring principles. It captured Buffett’s philosophy on wealth, leadership and America’s future — delivered with the same penetrating wisdom that has guided billions of investors.
He also used the opportunity to highlight his faith in his successor, Greg Abel. The core message was clear: he’s “going quiet” after stepping down as CEO..
However, he won’t disappear completely. Rather than the exhaustive shareholder letters he’s famous for, he’ll deliver annual Thanksgiving messages.
The ‘greed’ problem
In typical Buffett fashion, his last words were not all tender. He used the letter to deliver a scathing critique of modern corporate excess, warning of a dangerous pattern emerging in American business.
He noted how new disclosure rules designed to embarrass executives into restraint have spectacularly backfired. The warning came days after reports that Tesla CEO Elon Musk had been approved a $1trn pay package.
Describing the growing trend as toxic, he said: “Envy and greed walk hand in hand.”
But while this may be commentary on corporate pay, it applies to the investing world too. A world where too often, excessive greed leads to losses.
So what can investors learn from his legacy?
Taking lessons on greed from a man whose net worth is $147.1bn may seem ironic, but few understand the dangers of excess better than he does.
As one of his most famous quotes goes: “Be fearful when others are greedy and greedy when others are fearful.”
Considering the bloated valuations of many of today’s stocks, being fearful seems appropriate. A good way to take on that advice may be to look for less volatile stocks than Tesla.
Rather, it may to wise to consider one of Buffett’s favourites, Coca-Cola. In the UK, the London-listed Coca-Cola Europacific Partners (LSE: CCEP) is the largest independent Coca-Cola bottler by net revenue.
The £32.74bn company has a Beta score of just 0.7, indicating low volatility. It was listed on the London Stock Exchange (LSE) just before Covid but is already up 150% in five years.
Rapid growth with strong revenue
Since its listing, the company has expanded aggressively. It acquired the Australian bottling company Coca-Cola Amatil in 2021 and a 60% stake in Coca-Cola Beverages Philippines in 2024.
Encouragingly, total revenue has almost doubled from £9.62bn in 2020 to £18.51bn this year. Naturally, with a brand as big as Coca-Cola, that growth is unlikely to lose steam any time soon.
But strong branding and cash flow aside, it does carry some risks. Notably, around £8.5bn debt against only £7.72bn equity. That leaves it with less flexibility in economic downturns and a risk of financial troubles if earnings decline.
A final farewell
As one of the greatest investors to ever live, Buffett will be greatly missed. But his legacy lives on in his lessons — and now more than ever, investors would be wise to take them to heart.
For investors with a long-term mindset, a stock like Coca-Cola Europacific’s worth considering. In today’s volatile economic environment, it could add stability and defensiveness to a portfolio.
