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Few investors alive today have come close to delivering the exceptional returns achieved by Warren Buffett. The billionaire amassed enormous wealth in the stock market, and even though he’s now retired, countless investors continue trying to follow in his footsteps.
So what made his strategy so successful? And how should a new investor think about investing their first £1,000 using his winning method?
Thinking like Buffett
At its core, Buffett’s investing method is remarkably simple. Rather than chasing hot trends, he hunts for high-quality companies trading at an attractive price while also being protected by powerful competitive advantages.
These advantages can take many forms, including branding power, network effects, or enormous scale. Either way, they help keep competitors at bay while protecting pricing power and profit margins.
Yet even the best businesses in the world can turn into a terrible investment if the wrong price is paid. And his focus on finding quality at a discounted price to buy and hold for decades is how Buffett built his reputation among long-term value investors.
Sounds simple enough. So which UK shares might fit the bill?
A Buffett-style investment
Applying Buffett’s strategy today, Coca-Cola HBC (LSE:CCH) certainly looks like a strong contender. And not just because it’s the bottling partner of Buffett’s famous Coca-Cola Company investment in the US.
The UK-listed Coca-Cola HBC manufactures, distributes, and sells Coca-Cola branded drinks across the European and African markets. And it holds many of the same advantages that attracted Buffett to the original US enterprise.
The group has access to world-famous brands, an enormous distribution network, and enough pricing power to keep cash flowing even when economic conditions become challenging. And its latest results perfectly demonstrate this resilience in action.
During the first half of 2026, organic revenue increased 9.6% as sales volumes rose 7.5%. Meanwhile, underlying operating profit surged 15.2% to €760.1m, beating expectations to the point where management ultimately upgraded its full-year guidance.
However, despite this momentum, the shares currently trade at around 18.6 times earnings. That’s not bargain-bin territory, but it’s hardly an outrageously expensive valuation either, particularly for a quality market-leading business.
What could go wrong?
Sadly, even Buffett-style stocks aren’t immune to disruption. Growing health concerns, sugar taxes, and shifting consumer preferences could weaken demand for traditional fizzy drinks, forcing management to spend more heavily on product innovation.
In fact, we might already being seeing some potential early signs of this with capital expenditure jumping 36% during the first half, dragging free cash flow 12% lower in the process.
There’s also the geographic risk to consider. Many of Coca-Cola HBC’s fastest-growing markets operate across politically and economically volatile regions. As such, the group’s earnings are exposed to volatile currency swings and potential regional disruption.
Nevertheless, this remains a highly profitable enterprise armed with terrific brands and an expanding international footprint. That’s why for novice investors looking to follow in Buffett’s footsteps, I think Coca-Cola HBC could be a top first stock to consider. And it’s not the only Buffett-style opportunity I’ve got my eye on right now…
Should you invest £5,000 in Coca-Cola Hbc Ag right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Coca-Cola Hbc Ag made the list?
Zaven Boyrazian does not hold any positions in the companies mentioned.