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I appreciate the positive outlook expressed in these letters, and it's helpful to reflect on progress our society has made in so many areas. Coca-Cola's perfor

by getpost 16y ago

I appreciate the positive outlook expressed in these letters, and it's helpful to reflect on progress our society has made in so many areas. Coca-Cola's performance is striking. In 2011 you can still make a fortune, as Steve Jobs put it, 'selling sugar water to children.'[1] Does Mr Buffett care about, or even consider, the public health and social costs of the success of Coke and its products?[2] Philip Morris has traditionally had strong financial performance as well. It's safe to say drug dealers can be financially successful. Should we be celebrating that fact? I admire Mr Buffet's modest, down-to-earth style. He seems proud that his investment in BNSF will promote the greater good. I wish he had that goal for all his investments. [1] Jobs was referring to Sculley's work at Pepsi, of course. http://www.pbs.org/nerds/part3.html http://www.pbs.org/nerds/part3.html [2] Lustig, Sugar, The Bitter Truth http://www.youtube.com/watch?v=dBnniua6-oM http://www.youtube.com/watch?v=dBnniua6-oM

firebones 16y ago
Your comment got me thinking. Buffett has pledged 99% of his net worth to charity when he's gone, and has enlisted other wealthy entrepreneurs to follow suit by donating at least 50%. Will that allocation of capital produce greater good than would a lesser amount garnered through investments based not on seeking the best ROI but instead based on furthering the greater good? Honest questions, and ones that I don't have the answers to: has his contribution to Coca-Cola and Philip Morris as an investor harmed the greater good more than the $44 billion or so of his net worth that will flow to charities? Could entrepreneurs and capitalists create more good with that $44 billion than the Gates Foundation?
robryan 16y ago
I don't think the tech companies get off free here though, Apple have reportedly turned a blind eye in the past to conditions in factories producing their products. Coca-Cola does sell a lot more than their flagship drink though, when it comes to ethics of what you can legally invest in they could do a lot worse.
xiaoma 16y ago
Coca Cola's performance is about the brand and the distribution, not the product. They also own and successfully operate much healthier product lines. At this time, they aren't what the market wants for the most part. Most place a higher value on the extremely low cost and good taste of sugary fizzy water. When that changes, whether for cultural, regulatory or other reasons, the Coca-Cola company will still be in an excellent position and possibly make even more money from its healthier products. Also, as a private consumer, I don't really appreciate attempts to protect me from myself.

by getpost 16y ago

firebones 16y ago

Your comment got me thinking. Buffett has pledged 99% of his net worth to charity when he's gone, and has enlisted other wealthy entrepreneurs to follow suit by donating at least 50%. Will that allocation of capital produce greater good than would a lesser amount garnered through investments based not on seeking the best ROI but instead based on furthering the greater good? Honest questions, and ones that I don't have the answers to: has his contribution to Coca-Cola and Philip Morris as an investor harmed the greater good more than the $44 billion or so of his net worth that will flow to charities? Could entrepreneurs and capitalists create more good with that $44 billion than the Gates Foundation?

robryan 16y ago

I don't think the tech companies get off free here though, Apple have reportedly turned a blind eye in the past to conditions in factories producing their products. Coca-Cola does sell a lot more than their flagship drink though, when it comes to ethics of what you can legally invest in they could do a lot worse.

xiaoma 16y ago

Coca Cola's performance is about the brand and the distribution, not the product. They also own and successfully operate much healthier product lines. At this time, they aren't what the market wants for the most part. Most place a higher value on the extremely low cost and good taste of sugary fizzy water. When that changes, whether for cultural, regulatory or other reasons, the Coca-Cola company will still be in an excellent position and possibly make even more money from its healthier products. Also, as a private consumer, I don't really appreciate attempts to protect me from myself.