Diageo: Can Investors Replicate Warren Buffett's Coca-Cola Bet?

Investors may be able to replicate Warren Buffett's 1980s Coca-Cola bet by buying Diageo shares, which have been hammered after a dividend cut and string of disappointing results. Despite this, the underlying business remains world-class, with brands like Johnnie Walker, Smirnoff, and Guinness.

The negative sentiment surrounding Diageo isn't entirely unfounded, with growth proving elusive in recent years. However, new CEO Sir Dave Lewis has moved quickly to force through change, including slashing dividends, divesting non-core assets, and stripping out management layers.

The latest results show green shoots of progress, with Europe growing organic sales 8.8%, Africa surging 17.1%, and Latin America jumping 16.2%. However, North America remains a key concern, where the company is struggling to maintain a competitive position due to consumers opting for cheaper brand alternatives.