Warren Buffett is renowned for promoting US-listed company Coca-Cola as an inevitable stock that will essentially increase profits forever, but falling sales...

Warren Buffett is renowned for promoting US-listed company Coca-Cola as an inevitable stock that will essentially increase profits forever, but falling sales volumes in the US and the recent interim result from Coca-Cola Amatil (Australia's distributor of Coke) suggest otherwise. Coca-Cola Amatil's share price has fallen to levels not seen since the GFC following a terrible interim result. In Australia revenue fell 0.5% to $1,364m compared to the same period last year but, with slightly higher volumes failing to offset lower prices, operating profit slumped 14.1% to $227m. New chief Alison Watkins will announce further details on her strategic review in due course and you can expect a slight improvement in earnings in the second half, but that will still mean a big fall in earnings from last year. Unless the share price falls further we'll be in no rush to get involved while the company's competitive position deteriorates. (VIEW LINK)