Coca-Cola will likely deliver lower returns than the S&P 500 over the next decade, and most investors would be wise to invest their money elsewhere.  However, it makes sense for Warren Buffett to own Coca-Cola because he juices his return by further levering the company’s already levered steady stream of cash flows.  Lastly, if you’re in the rare position where you truly need the dividend to cover ordinary living expenses then it’s smart to own Coke for its reduced short-term “uncertainty risk.”