Warren Buffet - "Cola Has No Taste Memory" - In Their Own Words

Warren Buffet describes why he believes Coca-Cola is a great investment. He States "Cola has no taste memory".
This helps us understand why some people substitute water for cola. As Warren states it is a inexpensive drink that always feel refreshing. This is how cola is addictive.

Transcript:

"One thing that people don‘t understand is one thing that makes this product worth 10s and 10s of billions
of dollars is one simple fact about really all colas, but we will call it Coca-Cola for the moment. It
happens to be a name that I like. Cola has no taste memory. You can drink one of these at 9 O‘clock, 10
O‘clock, 1 O‘clock and 5 O‘clock. The one at 5 o‘clock will taste as good to you as the one you drank
early in the morning, you can‘t do that with Cream Soda, Root Beer, Orange, Grape. All of those things
accumulate on you. Most foods and beverages accumulate; you get sick of them after a while. And if you
eat See‘s Candy—we get these people who go to work for us at See‘s Candy and the first day they go
crazy, but after a week they are eating the same amount as if they were buying it, because chocolate
accumulates on you. There is no taste memory to Cola and that means you get people around the world
who will be heavy users—who will drink five a day, or for Diet Coke, 7 or even 8 a day. They will never
do that with other products. So you get this incredible per capita consumption. The average person in this
Buffett Lecture at the University of Florida School of Business
Contact email: aldridge56@aol.com blog: http://csinvesting.wordpress.com studying/teaching/investing Page 11
part of the world or maybe a little north of here drinks 64 ozs. of liquid a day. You can have 64 ozs. of
that be Coke and you will not get fed up with Coke if you like it to start with in the least. But if you do
that with anything else; if you eat just one product all day, you will get a little sick of it after a while."

Links:
https://intelligentinvestorclub.com/downloads/Warren-Buffett-Florida-Speech.pdf
https://hurricanecapital.wordpress.com/2015/02/01/video-notes-warren-buffett-speaks-with-florida-university/
http://csinvesting.org/wp-content/uploads/2015/01/Buffett_Lecture_Fla_Univ_Sch_of_Business_1998.pdf
https://www.youtube.com/watch?v=eRlQfS__u7E
https://www.youtube.com/watch?v=EEOKOk9EX-E