3 Investing Lessons In The Food That Built America

The opposite of this can be seen in the White Castle story. White Castle was actually the first quick-service burger chain, opening in 1921 (a full 34 years before McDonald's). But opposition to franchising and insular, family-centric ownership has prevented it from achieving the same kind of success. CNBC even did a video on why it never grew into a national chain.

The lesson? Innovation combined with aggressive, big goals lead to the greatest growth successes.

Green Dot Principles Apply

The most relevant revelation, and the one that inspired this article, is that our 3 "green dot" principles - rising revenues/large market, recurring revenues, and moat - applied even 100+ years ago when many of these food and beverage companies were rising up.

Take Coca-Cola, for example. Certainly, Coke filled out the innovation and "think big" lessons mentioned above. Like McDonald's (and many other companies), Coke had two different people drive these two lessons. John Pemberton invented the drink, but Asa Candler built the business.

Coke could never have gotten to be the global behemoth it is today - it is the 2nd most recognized word in the world - without the 3 "green dot" characteristics.

Certainly at its founding in 1889, and even when it went public in 1919, The Coca-Cola Company had all of the makings of a great investment. Its market potential was simply enormous: every person on planet earth could realistically become a customer! Its revenues were recurring, as its product was rapidly consumed and needed to be repurchased over and over again by the same customers. Finally, it would have been clear even in 1919 that Coca-Cola was developing a valuable consumer brand that customers were familiar with and asked for by name - an indication of the "automatic purchase" brand advantage.

Investors that identified Coke early on, and HELD ONTO THE STOCK (this should be our 4th principle), would have turned a $100 investment in the IPO into well over $1 million dollars today.

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Disclaimer: The content is provided by Alexander Online Properties LLC (AOP LLC) for informational purposes only. The material should not be considered as investment advice or used as the basis ...

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