Coca-Cola FEMSA: A Top Bill Gates Stock for Long-Term Growth

Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) has been a standout performer in Bill Gates' investment portfolio, with the tech billionaire's foundation holding a significant stake in the company. As of Q4 2024, the Gates Foundation's portfolio, managed by Michael Larson, has a value of over $42 billion, with the tech and industrial goods sectors representing 29% and 26.3% of the portfolio, respectively. Coca-Cola FEMSA is one of the top holdings in the foundation's portfolio, and for good reason.

Coca-Cola FEMSA is the largest franchise bottler of The Coca-Cola Company, serving a population of over 270 million across Mexico, Central America, Colombia, Venezuela, Brazil, Uruguay, and Argentina. The company's strong performance in Latin America is a testament to its growth potential and an attractive investment for Bill Gates. In Q4 2024, Coca-Cola FEMSA increased its revenue by 14.3% to MXN 75.5 billion (approx. $3.7 billion), driven by revenue management initiatives and favorable currency translation effects. The company also witnessed a volume growth of 2.2% YoY, reaching 1.08 billion unit cases.

Coca-Cola FEMSA's strategic partnership with The Coca-Cola Company plays a crucial role in its long-term success and dividend growth prospects. As the largest Coca-Cola bottler in the world, Coca-Cola FEMSA has exclusive rights to produce, distribute, and sell Coca-Cola products in various territories. This partnership provides the company with a strong brand, a diverse product portfolio, and a well-established distribution network, which contribute to its financial stability and growth.

Moreover, Coca-Cola FEMSA's focus on revenue management initiatives and favorable currency translation effects has significantly contributed to its earnings growth. The company's strong brand portfolio, geographic diversification, strategic partnerships, and effective cost management further enhance its financial performance. Coca-Cola FEMSA's dividend payout, with a yield of around 2.5% as of Q4 2024, provides a steady income stream for investors like Bill Gates.

In conclusion, Coca-Cola FEMSA's strong performance in Latin America, strategic partnership with The Coca-Cola Company, and focus on revenue management initiatives make it an attractive investment for Bill Gates. The company's growth potential, financial stability, and dividend growth prospects align with Gates' long-term investment strategy. As the Gates Foundation continues to expand its global impact, Coca-Cola FEMSA remains a top holding in its portfolio, offering investors a compelling opportunity for long-term growth.