Ben Gilbert

Gross margins average about 60%.

Historically, it was as high as 70%.

So almost as good as a software business, but not quite.

But for a physical goods business, it's kind of unbelievable that they have 60% gross margins.

Then when you look at the revenue mix on products, this kind of gets to like, what is the company today?

69% of revenue comes from sparkling soft drinks.

So as much as they are in water and milk and tea and juice and sports drinks, the bulk of this business is selling soda.

40% of all volume is trademark Coca-Cola, which is just Coke, Diet Coke, Coke Zero, and the caffeine-free and flavored variants.

47% of the volume is the Coke family.

Wow.

Wow.

So I kind of continue to maintain this mentality of they keep trying to get into other stuff, but then they're always a little bit like, geez, I know we should be getting into this other stuff, but it's not as good as our original thing.

It's not as good of a business.

It's not as unique of a brand.

And I also think they're kind of like...

limping in to a lot of these other categories they're not making a giant early bet on things that become the next big beverage fad they're trying to watch and see how it plays out and then jump in yeah whether it's sports drinks or energy drinks exactly

Market cap is $300 billion, so huge company.

Not by Mag7 tech standards, but massive, very valuable company.

You'll note, David, they did not achieve Charlie Munger's thought experiment of $2 trillion, and they are very unlikely to get there by the 150th birthday in 2036, which is the timeframe that Charlie used.

Indeed.