Your Financial Independence Goal

Here is the picture of financial independence with your income statement on the top and balance sheet on the bottom:

• The income statement represents all income and expenses ... anything left over can be used for saving, investing, Toys R Us.
• The balance sheet includes everything you own, Assets, everything you owe, Liabilities, and the difference between the two, Equity. If you own a car worth $10,000 and owe $2,000 on it, your asset value is $10,000, the liability is $2,000 and the equity is $8,000.

In order to become financially independent, it is necessary to buy enough cash flowing assets such as rental property, dividend paying stocks and pinball machines, so that the cash "flowing-in" is equal to or greater than monthly expenses. A person with $2,000 in monthly expenses and $2,000 in monthly cash flow is financially independent.

The ellipse above connecting the income statement and the balance sheet represents the cash flow from cash generating assets. It is important to have the ability to calculate the rate of return on these assets. An asset that delivers $10,000 a year in cash flow and requires an initial investment of $10,000, has a rate of return of 100%. A similar asset that delivers $2,000 a year in cash flow and an initial investment of $10,000 has a rate of return of 20%. All else equal, assets with higher rates of return will get you to financial independence faster.

And now, a list off cash flowing assets:

• Rental Property
• Dividend Paying Stocks
• Warren Buffett Style Stocks That Deliver Consistent Capital Gains
• Covered Call Options
• Royalties
• Systematic Business Models

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To learn more about cash flowing assets such as Systematic Business Models and Warren Buffett Style Stocks, pre-order Building a Small Business That Warren Buffett Would Love, available at Amazon.com or BarnesandNoble.com.

Building a Small Business That Warren Buffett Would Love,available at Amazon.comorBarnesandNoble.com.

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Walt Disney is Buried Beneath the Pirates of the Caribbean Ride

Walt Disney is one of the most interesting entrepreneurs and not just because he thwarted lung cancer via cryogenic freezing. (Yes folks, he is in fact interred beneath Pirates of the Caribbean, the last ride he helped design, which opened three months after his death in the spring of 1967.)

Location of the Hidden Staircase on the Pirates of the Caribbean Ride

I believe Walt Disney embodies the visionary spirit of American entrepreneurship: here is a guy who started with the sketch of a mouse and turned it into a multi-billion dollar business, starting with animated shorts, leading to full-length features and merchandising and finally to happiness-coma inducing theme parks which cause patrons to forget how much they have spent on turkey legs and mouse ears. The parks continue to metastasize just as Walt wanted, they will never stop growing.

The next time you attend a Disney theme park remember, it all started from the simple sketch of a mouse, and when you ride Pirates, look for the hidden staircase tucked behind and to the right, just after the first drop.

Pre-order your copy of Building a Small Business That Warren Buffett Would Love at Amazon.com or BarnesandNoble.com.

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Warren Buffett and the Magic of Retained Earnings

The following is an excerpt from Building a Small Business That Warren Buffett Would Love, available March 12th at Amazon.com and BarnesandNoble.com.

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If I had a magical process for investing capital at a high rate of return, let’s say at 20 percent, and you invest $5 with me, at the end of the year I will have made you $1.

You will now be faced with three options:

1. You can take the $1, in which case you can spend it or invest it elsewhere, perhaps in a llama farm.

2. You can leave the $1 with me and allow me to reinvest it for you.

3. Or together, we can use the $1 to buy out existing shareholders.

The first question that should come to mind, if you leave the money with me to reinvest, is “are our children learning,” and next, “Will I have the ability to continue generating the 20 percent rate of return?” Then, if you take the $1, what rate of return can you expect to achieve … in the llama farm? The answer to the first question is found in two components:

1. The track record of ROE in my business.

2. The historic retained earnings off of my business’s balance sheet.

If historically, my business has retained earnings and the ROE has remained strong, averaging 20 percent, then by all appearances the business has the ability to put the $1 to good use, reinvesting it at the high rates of return on equity. If, on the other hand, my business has historically retained earnings (plowed them back into the business for expansion, new business projects, and so on), yet the return on equity has steadily dropped over the years, then it appears that I have poorly allocated retained earnings into low returning investments, and I do not have the capability to effectively expand the business or, at the very least, the core, original business has begun to suck wind. Either way, you will see this as a drop in ROE and perhaps a paltry, anemic ROE track record.

To read the full chapter, pre-order your copy of Building a Small Business That Warren Buffett Would Love at Amazon.com orBarnesandNoble.com.

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McDonald's and a Golden Crispy Return on Equity

Painting the Picture of Return on Equity

Simply put, return on equity is a measure of how hard the equity in a business is working.

ROE = Net Income/Shareholder’s Equity

Net income can be found on the income statement and equity can be found on the

balance sheet. In a small business with one owner, all of the equity technically belongs to the single owner or the single shareholder, although technically, shares may not exist depending on the entity type. All things equal, a business investment with a 20 percent return on equity is superior to a business investment with a 10 percent return on equity.

Why So Important?

As you can see from our ROE formula, a business with a strong return on equity is delivering a healthy amount of income using the least amount of equity possible. (The numerator is big, the denominator is small, you put the lime in the coconut.)

Back to our comparison mantra, we don’t necessarily want to throw $100,000 worth of equity into a business generating a 10 percent return on equity, or $10,000 a year, when we can invest it in another available option that is firing at 20 percent a year and will deliver $20,000 a year in income. More is better, right, when it comes to income and business.

For an existing business, a low return on equity is an indicator of a problem. If after obtaining your handy dandy industry comparison report you find that your business should be chopping away at a 15 percent return on equity and it is only delivering 7 percent, I would argue that the competition in town is probably eating your lunch (McNuggets included), and sooner or later they will be eating your dessert as well (Snozzberries!). The competition is utilizing their equity more efficiently, leaving them more income at the end of the year to potentially reinvest and grab more market share. Better start tweaking your return on equity or grabbing those McDonald’s references.

And Now Some Examples

Table 4.1 displays three 10-year track records of three consumer monopoly companies that Warren Buffett was at one time or currently in love with: McDonald’s, Coke, and Wal-Mart. Above all else, this picture should give you a crystal clear expectation of what to look for in order to build a business that Warren Buffett would love. Remember, return on equity is found by dividing the net income, from the income statement, by the equity found on the balance sheet.

Table 4.1 Ten-Year Return on Equity for Three Consumer Monopolies

Source: ProfitCents, reproduced with permission.

McDonald’s: The name alone brings to mind those golden, crispy fries, inexpensive hamburgers, Grimace, Officer Big Mac, Mayor McCheese, the useless McNugget mascots.

Look at that golden, crispy return on equity over the years. Despite a very anemic 2002 at 9 percent, we see a steady, strong march through the mid to upper teens and into the lower 30 percent range in the late 2000s, resulting in a hearty, 10-year average return on equity of 21 percent. Beat that Colonel Sanders! (Author’s note: The squinty eyed, bolo-tie wearing, senior commissioned officer connoisseur of fried poultry has in fact annihilated this number … over the past five years, as part of the Yum brands portfolio, according to Morningstar.com, KFC and its Yum counterparts have averaged a 131 percent return on equity. That’s a lot of chicken!) McDonald’s exemplifies a business with steady, strong, and growing return on equity, one that so far, Warren Buffett would love.

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To read the full chapter, pre-order your copy of Building a Small Business That Warren Buffett Would Love at Amazon.com or BarnesandNoble.com.

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Coke Polar Bear Goes Crazy ... Over Earnings

When it comes to starting, building, buying or investing in a business, it is imperative to seek out a strong track record of earnings in order to Build a Small Business That Warren Buffett Would Love. Why? Because with consistency comes predictability and with predicabilty comes the assurance that the business can repeat the past and has the potential to increase the overall company value. A business with earnings can potentially retain the earnings and reinvest them in high yielding projects that will continue to increase the overall company earnings and value.

Without predictability, it is difficult to project the future value of the business with any sort of reliability.

What We Want to See

Coke's ten-year earnings per share track record is as follows:

This appears to be a nice and steady, growing earnings record. It appears to be reliable and growing at a 13.7% clip. This is the type of record to seek out in an investment or any type of acquistion or start-up scenario. It might not be on a per share basis, but nonetheless, the pattern should be the same.

As Opposed To ...

This. You do not want to see this. It looks like the track layout of Space Mountain.

Again, the reason this is so important is because well, number one, the company is making money and two, it will now be possible to run valuation formulas as mentioned in the book Building A Small Business That Warren Buffett Would Love and come up with a future value for the business and a present value price tag. Earnings are penultimate in identifying a healthy business that has lasting power.

Again ... this is what we want to see in the earnings picture:

It is the picture of earnings that makes Coke even more delicious and refreshing.

Available at Amazon.com and BarnesandNoble.com.

The Consumer Monopoly

What makes a brand distinctive? Better yet, let's name some distinctive brands:

-McDonald's
-Coke
-Hershey's
-Campbell's

If I say soup, what is the first brand name that comes to mind? For me, this is easy. It is Campbell's. (sorry all of you Progresso folks)

So, for argument's sake, a consumer monopoly is emblazoned in the minds and hearts of consumers. It took Coke years, literally hundreds of years of brand building, positioning itself in tin-type pictures gripped in the mitt of Santa Clause, shoving the red color in your face, and endlessly presenting a curved bottle shaped like a hoop skirt in order to establish its endearing presence.

The reason, that Coke is a consumer monopoly is because, even with unlimited resources, it would be very difficult for you and I to start a soft drink business and competitively take out Coke.

The same goes for Campbell's. Even with a billion dollars, I doubt you or I could start a soup company that could rival Cambpell's within a few years. Again, when I hear "soup", I think of Campbell's and a red and white can.

So qualitatively, a consumer monopoly is a well-established brand, founded on years of brand-building that could not easily disappear from the hearts and minds of consumers and could not easily be competitively replicated.

This as opposed to a commodity type business ... a business that has no brand distinction. The classic example that I like to use is a gas station. Even if I am loyal to Joe's gas station and like the sandwiches that Joe fixes at lunch, if Bob's across the street starts offering gas for 25 cents cheaper, I will immediately abandon Joe's. In the consumer monopoly scenario, even if Pepsi started offering cans for 25 cents cheaper, I doubt I would abandon my Coke. The same goes for Campbell's soup. Even if Progresso offered a more price conscious soup, I would find it hard to abandon Cambpell's Chicken Noodle.

_________________________________________________________________

Building a Small Business That Warren Buffett Would Love,available atAmazon.comorBarnesandNoble.com.

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A Global Financial Tailspin

If a penalty is not present for those who take a risk and fail, what disincentive do they have to not try the risky maneuver again? I am a hands-off, deregulation man myself but after reading some of these articles and gaining an understanding of what went on, I think that if any regulation is needed it is in the bond market.

The stock market is fairly translucent, the bond market is opaque. This is what allowed the bond institutions to package up all of the junky mortgages and get them reclassified at a better rating. This was not the cause of the subprime mortgage catastrophe, but it certainly made it worse.

I believe it shouldn't be allowed to get to the point of failure in the first place, at least not on such a massive level based on a massive bet that was founded on unethical financial practices.

The more I read about this the more I come to understand that what happened in the secondary markets, the rolling of the bad loans into tranches which were then rolled into CDOs to mask the bad loans which were then insured with credit default swaps, it was like "Dumb and Dumber Go to a Casino." The problem is, they were having fun making these high stakes, ludicrous bets with billions of dollars. I find it hard to believe that a few key individuals could have been responsible for throwing us into a global, financial tailspin but the more I read, the more I believe this to be the case.

I believe in capitalism and free markets but when a few key players have the power to destroy the free market and opportunity for others, a referee must step in.

World Wrestling Entertainment

Always amazed by folks who think achievement is tied closely to greed ... if anything money will allow you to keep following through on your goals. Do you think Steve Jobs went home and rolled in piles of money or spent more time planning Apple's next product? And he was sitting on billions of dollars in cash in Apple. The money allowed him to continue innovating. If anything money is just another metric to gauge success in one area and certainly not the only metric.

Also, the majority of America's rich are first time millionaire's who gained their wealth through small business ... no silver spoons here folks. Those who aspire to keep up appearances through huge houses, BMWs and lifestyle "glitter" for the most part are truly broke, or balance sheet poor. The majority of millionaire's live in moderate neighborhoods and drive standard cars, valuing achievements over appearances. These findings have been published in Thomas Stanley's books, "The Millionaire Next Door" and "Stop Acting Rich."

Additionally, both Fox News and MSNBC get it precisely wrong folks ... the truth is much more moderate ... which is not as entertaining as the modern "Wrestling Entertainment" spectacle that modern media and politics have created. Turn it on, find out who the good guys and bad guys are, watch the wrestling match, repeat. This is just entertainment, not the truth of the matter for either side of the fence.

Steve Jobs

Your time is limited so don't waste it living someone else's life.

Don't be trapped by dogma which is living with the results of other people's thinking.

Don't let the noise of other people's opinions drown out your own inner voice.

And most importantly, have the courage to follow your heart and own intuition, they somehow know what you truly want to become.

Everything else is secondary.

- Steve Jobs addressing the 2005 Stanford graduating class

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Building a Small Business That Warren Buffett Would Love,available at Amazon.comorBarnesandNoble.com.

OneMillionJobsNow.com

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One Million Jobs.

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Abraham Lincoln is Your Baby Daddy

“A capacity, a taste for reading, gives access to whatever has already been discovered by others. It is the key, to the already solved problems. And not only so. It gives a relish, a facility, for succesfully pursuing the (yet) unsolved ones.”

- Abraham Lincoln, Address before the Wisconsin State Agricultural Society, Milwaukee, Wisconsin, September 30 1859

"Tell me what brand Grant drinks so I can send some to all my generals."

-Abraham Lincoln, Remark to a congressional delegation urging that Lincoln dismiss Grant because of his drinking, 1863, from Grant, Lincoln, and the Freedman by Chaplain John Eaton.

Building a Small Business That Warren Buffett Would ... available Spring, 2012

Abraham Lincoln and the 10,000-Hour Rule

by Gene Griessman, Ph.D. - The Beatles did it before becoming world famous. Bill Gates did it before becoming one of the world's richest men. And Abraham Lincoln did it before becoming one of America's most honored President. Malcolm Gladwell, author of Outliers, maintains that anyone who expects to become world-class at anything had better plan on doing it. And what is IT? IT is practicing thousands and thousands of hours. Gladwell says 10,000 hours. In the case of the Beatles, they played night after night in Hamburg, Germany's strip clubs. Here's how John Lennon remembered the experience: "We got better and got more confidence. We couldn't help it with all the experience playing all night long....In Hamburg, we had to play for eight hours, so we really had to find a new way of playing." When the Beatles returned to Liverpool, they had become a seasoned, musically disciplined band with their own sound. In the case of Bill Gates, he started doing his 10,000 hours when he was in the eighth grade. His high school purchased a teletype machine that was linked to a mainframe computer in Seattle. Gates and his buddy Paul Allen used that system to the limit, then found a way to get computer time at a software company where they spent literally thousands of hours learning how to use the new technology. Here's Bill Gates on that topic: "It was my obsession. I skipped athletics. I went up there at night. We were programming on weekends. It would be a rare week that we wouldn't get twenty or thirty hours in." And Lincoln? Historian Gerald J. Prokopowicz writes: "Over the 25 years that he practiced law, Lincoln (and his partners) handled an average of more than two-hundred cases a year, an awesome workload." Do the math. Two-hundred cases for twenty-five years come to 5000 cases. (Actually there were more than 5000 cases.) Let's say Lincoln spent just two hours on each case. (On some he certainly spent less time, on others far more.) That easily comes to the magic number 10,000 hours that Gladwell has written about. Lincoln, like everybody who has ever made a lasting mark in any field, got to be good at what he/she was doing by putting in thousands of hours of practice. About the Author: Gene Griessman, Ph.D. is a professional speaker and Lincoln portrayer. He is author of The Words Lincoln Lived By and co-author of Lincoln Speaks To Leaders: 20 Powerful Lessons From America's 16th President, with Pat Williams and Peggy Matthews Rose. Griessman's website is http://www.presidentlincoln.com Adapted from The Achievement Digest, No. 66; (for a beautifully written account of this phenomenon, see Malcolm Gladwell, OUTLIERS: THE STORY OF SUCCESS, NY: Little, Brown, & Co. Chapter Two)

source: http://www.smallbusinessbrief.com/articles/inspiration/010414.html

Business Plan Financials Notes

“Funding and financials go hand-in-hand., John”

“Just like Lisa Marie Presley and divorce papers,” John said.

“The financials tell you how much you need for funding, and the funding relates back to how much profit is in the financials.”

“So this would be in the sources and uses of funds sheet, the amount of financing I need?”

“Yes, that is correct John. One of the first sheets the banker will turn to is the sources and uses of funds. They want to know how much you need and what it is going to be used for.

“Additionally, it is wise to tie the financials back to the text in your narrative. Also, investors like having the track record of an existing business to compare with the projections for the new business. So, it pays to inject real world numbers of comparables when possible.”

“This is where the advantage of a franchise comes into play,” John said.

“Yep, a franchise typically will have real-world comparable numbers to call on. If the business is a start-up then friendly non-competitor numbers, public company data or primary marketing research can be used.”

“Just as you described earlier.”

“Exact-a-mundo.

“In the business plan, the business and marketing sections should provide the financial assumptions. Although it is probably a good measure to have an assumptions subsection as well.”

“Just like the Who the night that Keith Moon passed out on the drums.”

Do not sugarcoat the numbers or present blue sky in this section. Investors will see right through this and when the numbers lose credibility the whole plan falls apart. If investors and/or bankers can't trust your numbers they won't trust you.

The opening of the financials section should be a one-page overview of the financial data. If the plan is being prepared for the purposes of attracting funding, the amount needed and what you're willing to give in return - interest, ownership, and the like – needs to be included.

Relevant Financials to Include in Your Business Plan

Existing Businesses:

Uses of Funds

Cash Flow Statement (3 – 5 years)

Income Statement (3 – 5 years)

Income Projections

Breakeven Analysis

Balance Sheet

Business Financial History or Loan Application

New Businesses:

Uses of Funds

Cash Flow Statement (3 – 5 years)

Income Statement (3 – 5 years)

Income Projections

Breakeven Analysis

Loan Application

It may also be useful to include a startup budget for a new business. This will help get an accurate picture of what you'll need in order to get your business up and running.

Building a Small Business That Warren Buffett Would Love - Available Everywhere, Spring 2012

Abe Lincoln and Small Business

Source: http://blog.smallbusinessadvocate.com/inspirational/small-business-survival-lessons-abraham-lincoln

Small business survival lessons from Abraham Lincoln

Many years ago I discovered the list of failures and setbacks Abraham Lincoln endured in his life. When I first read the list I was overwhelmed by two emotions: 1) Sadness - that any one person would experience so many bad things; 2) Admiration - that anyone could have accomplished so much in the face of so much adversity.

Here’s a short list – there actually are several more – of the life challenges of Abraham Lincoln
• He failed in business in 1831.
• He was defeated for state legislator in ‘32.
• He tried another business in ‘33. It failed.
• His fiancee died in ‘35.
• He had a nervous breakdown in ‘36.
• In ‘43 he ran for Congress and was defeated.
• He tried again in ‘48 and was defeated again.
• He tried running for the Senate in ‘55. He lost.
• The next year he ran for Vice President and lost.
• In ‘59 he ran for the Senate again and was defeated.
• In 1860 he was elected the16th President of the United States.

According to Gene Griessman, Lincoln scholar (www.presidentlincoln.com) and a member of my Brain Trust, in the nine years after critics completely wrote him off as a political player, Abraham Lincoln accomplished leadership feats and professional successes that were nothing short of heroic and for which he is still generally recognized as one of the two greatest American presidents.

Lincoln has taught us that the difference between history’s boldest accomplishments and its most staggering failures is often simply the diligence and will to persevere.

As we enter 2009, the 200th anniversary of Lincoln’s birthday and a year that will definitely challenge our diligence and will, if you’re ever tempted to slump into a self-involved pity party, go back and re-read Lincoln’s failures and setbacks. This time you’ll feel two other emotions: 1) Shame - that you allowed yourself to lapse into a funk; 2) Renewed perseverance – now remembering that like Lincoln, as long as you’re alive, every new day that you show up to work on your business and life could be the day that you turn the corner.

So, what advice would President Lincoln offer small business owners about dealing with economic challenges? Gene Griessman offered a number of words of wisdom from Lincoln when he joined me recently on my small business radio program, The Small Business Advocate Show. In addition to being a Lincoln scholar, Gene is also one of the world’s top Lincoln portrayers. I think you’ll benefit from hearing our conversation. Listen Live! Download, Too!

Ronald McDonald is Going to Get You!

Ronald McDonald

The name of Ronald McDonald is the same all over the world, except in Japan.

Because of the difficulties in pronouncing the “R” the Japanese know him as Donald McDonald. In China too his name is” McDonald Suk-Suk” which means something like Uncle McDonald.1.

The Hamburglar

His appearance has changed a lot since his debut in 1971. At the beginning his face was that of an adult male with a nose which was far too big, two protruding teeth and long gray hair.2.

Grimace

Grimace originally had four arms and was known as "Evil Grimace."

HISTORY OF McDONALD'S

1937 The McDonald BROTHERS open a tiny drive -in restaurant in Pasadena and sell hot dogs.

1940 Dick and Mac McDonald open an actagonaal drive-in restaurant, 600 square meters in size in San Bernadino, California.

1948 Speedee, a small Hamburglar figure becomes the McDonald's Restaurant symbol, first drive-thru is launched.

1952 The journal '' American Restaurant magazine''is the first to write an article on the McDonald's concept.

1954 Ray. A Kroc becomes the franchising agent for the McDonald brothers.

1957 The 40 McDonald's restaurants generate 3.8 million dollars in revenue.

1960 McDonald's reaches 228 restaurants, the 400 millionth HAMBURGER is sold and revenue reaches 37.8 million dollars.

1961 Ray Kroc buys out the McDonald brothers for 2.7 million dollars. The first Hamburger University is opened.
Speedee gives way to the '' Golden Arches'' as logo.

Ray Kroc

1963 Ronald McDonald is the first McDonald character to be launched.

1966 The first McDonald's Restaurants with seating arrangements are opened {up to now, only drive-inns}

1967 The first restaurants are opened in Canada and Puerto-Rico.

1968 The BIG MAC and the APPLE PIE are now featured on the program.

1971 The characters Hamburglar, Grimace, Major McCheese, Captain Crook and the Professor are launched. The first restaurants are opened in GERMANY, JAPAN, AUSTRALIA and the NETHERLANDS in ZAANDAM.

1974 The first Ronald McDonald House is opened in Philadelphia.

1977 The breakfeast menu is introduced, The first Austrian McDonald's Restaurant opens in Vienna. The proposals ''Fun to Go'' and ''Happy Meal'' are tested.

1979 The Happy Meal for children takes its place on the menu in the USA: The first one is called ''CIRCUS WAGON''.

1980 BIRDIE, the EARLY BIRD is integrated into the group of character. The 6.000th restaurant is opened in MUNICH.

1984 Chicken McNuggets are launched in Germany, Dick McDonald eats the fifty billionth Hamburger. Every 17 hours Mc Donald's opens a new restaurant.

1988 The 10.000th restaurant opens. The German version of the HAPPY MEAL THE JUNIOR TUTE.

1989 The McChicken Sandwich is taken up on the American menu.

1990 In Moscow the first McDonald's restaurant is opened, the World's largest seating 700 people. 2.

1. http://www.macstoys.nl/history%20characters.html

2. http://www.macstoys.nl/history.html

10,000 Hours

Malcolm Gladwell claims in his book that folks reach the "true genius" threshold of their craft when they reach the ten thousand hour mark of practice. In other words, a violinist, basketball player, golfer or programmer reaches extreme proficiency once they have practiced two hours a day for ten years.

The Beatles put in their 10,000 hours in Hamburg and produced their greatest work (arguably, Sgt. Pepper's Lonely Hearts Club Band) after Paul McCartney and John Lennon had been together 10 years, 1957 to 1967.

Bill Gates and Bill Joy had the opportunity to put in their 10,000 on computers starting in the late 60's. Gates had access to a computer at a summer camp thanks to a budgetary stroke of luck in which the parents of the attending kids invested excess bucks in computer equipment. Joy was able to time-share a computer at the University of Michigan and put in his time, sometimes nodding off multiple times in the middle of the night at the keyboard.

The point is, it takes ambition, talent and tons of work ... 10,000 hours to be precise.

Building a Small Business That Warren Buffett Would Love - Available Everywhere, Spring 2012

Coke is It!

Coca-Cola 2011 Second Quarter Earnings for 2011 – Delicious and Refreshing!

It is impossible to mention a Coke earnings report without bringing up the company’s behemoth track record of past earnings or the fact that they have created polar bears with more paw dexterity than Daniel Day Lewis’s left foot.

Here’s the track, Coke is it!

EPS Coke
2001	$ 1.60
2002	$ 1.23
2003	$ 1.77
2004	$ 2.00
2005	$ 2.04
2006	$ 2.16
2007	$ 2.57
2008	$ 2.49
2009	$ 2.93
2010	$ 5.06

Table 1-1

Source: fool.com

Second quarter reported EPS was $1.20, up 18%, with comparable EPS at $1.17, up 10% and ahead of our long-term growth target. Year-to-date reported EPS was $2.02, up 18%, with comparable EPS also at $2.02, up 9%.[i]

First = .82

· Second quarter reported net revenue and comparable net revenue were both $12.7 billion, up 47%, reflecting solid growth in concentrate sales, a 6% currency benefit, positive price/mix and the acquisition of Coca-Cola Enterprises' (CCE) North American operations in the fourth quarter of 2010. Year-to-date reported net revenue and comparable net revenue were both $23.3 billion, up 44%.[ii]

· Second quarter reported operating income was $3.2 billion, up 15%, with comparable operating income of $3.4 billion, up 18%, reflecting strong top-line performance, a 6% currency benefit and the acquisition of CCE's North American operations, partially offset by increased commodity costs. Year-to-date reported operating income was $5.5 billion, up 10%, with comparable operating income of $5.9 billion, up 14%, including a 4% benefit from currency.[iii]

ATLANTA, July 19, 2011 - The Coca-Cola Company reports strong second quarter and year-to-date 2011 operating results, meeting or exceeding our long-term growth targets and gaining volume and value share in total NARTD beverages. Reported worldwide volume grew 6% in both the quarter and year-to-date. Excluding new cross-licensed brands in North America, primarily Dr Pepper brands, worldwide volume grew 5% in the quarter and year-to-date. We achieved broad-based volume growth in the quarter across each of our five geographic operating groups, with growth of 7% in Eurasia and Africa, 7% in Pacific, 6% in Latin America, 5% in Europe, and 4% in North America. Excluding new cross-licensed brands, North America volume was even in the quarter and grew 1% year-to-date.[iv]

Building a Small Business That Warren Buffett Would Love - Available Everywhere, Spring 2012

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[i] http://www.thecoca-colacompany.com/dynamic/press_center/2011/07/2011-second-quarter-financial-results.

[ii] http://www.thecoca-colacompany.com/dynamic/press_center/2011/07/2011-second-quarter-financial-results.

[iii] http://www.thecoca-colacompany.com/dynamic/press_center/2011/07/2011-second-quarter-financial-results.

[iv] http://www.thecoca-colacompany.com/dynamic/press_center/2011/07/2011-second-quarter-financial-results.