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Core News Facts
Warren Buffett advises investors to focus on companies they can understand. The key points highlight the advantages of investing in consistently profitable companies like Coca-Cola, Alphabet, and Walmart, particularly for new investors.
Coca-Cola (NYSE: KO) recorded $47 billion in revenue last year with a net income of over $12 billion. It has maintained a dividend payout that has increased for 63 consecutive years, offering new investors a yield of 2.9% on their investment.
Alphabet (NASDAQ: GOOGL), the parent company of Google, remains a strong choice despite its complexity, supported by its diverse revenue streams including advertising and cloud services. Walmart (NYSE: WMT) generates nearly $700 billion in annual sales and is characterized by its steady performance and essential consumer goods, making it a reliable investment option.
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