first_imgSimply click below to discover how you can take advantage of this. Nadia Yaqub | Wednesday, 3rd February, 2021 | More on: DGE Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Here’s why I think this FTSE 100 stock could be among the best shares to buy today I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. See all posts by Nadia Yaqub I reckon Diageo (LSE: DGE) could be one of the best shares to buy within the FTSE 100. Nick Train (sometimes called ‘the UK’s Warren Buffett’) is a big fan of the stock too.Portfolio of brandsDiageo is a beverage company that has a diversified portfolio of over 200 brands. It owns big names such as Johnnie Walker, Captain Morgan and Smirnoff, among many others5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…And it has been growing its portfolio by acquiring brands. The global beverage industry has been consolidating, which I think is good for large companies like Diageo. This means that it can use its capital to snap up the smaller players and expand its portfolio. This is one reason why I think Diageo is one of the best shares to buy now.I think acquisitions will remain part of Diageo’s strategy too. Last year it purchased Hollywood actor Ryan Reynolds’ Aviation American. Capitalising on trendsDiageo derives a large portion of revenue from emerging markets and I feel this region has huge growth potential.Whisky, which is a key part of the DGE portfolio, is seen as a status symbol for the growing affluent classes in countries such as China and India. Consumers in these regions are willing to pay more for premium products, especially whisky that has ‘aged’.Drinkers are also loyal to premium brands, which are a big part of the company’s offer. I think this is important at a time when the beverage market is so competitive.Diageo is capitalising on the ‘premiumisation’ trend, where it believes consumers will pay for a higher-quality product. While there’s a risk that this trend could run out steam, so far the strategy has worked well for it. The coronavirus pandemic has had an impact on Diageo’s business though. Lockdowns have resulted in pubs, bars and restaurants closing temporarily especially in the developed markets. This has meant fewer people drinking alcoholic beverages. If the pandemic and restrictions continue, there is a risk of a negative impact on Diageo’s revenue.Nick Train thinks Diageo is one of the best shares to buyBut as I said, Nick Train, one of the UK’s highest-profile fund managers, likes Diageo. He’s invested in the stock via his Finsbury Growth & Income Trust portfolio.Train thinks Diageo has the best collection of alcoholic brands in the world. He even goes as far to say that he thinks UK investors are lucky to have such a company listed on the London Stock Exchange. He thinks consumers are loyal to premium brands and that some of Diageo’s brands are still likely to be around in 50 years.There’s no guarantee Diageo’s brands will be around for a long time, of course. But I agree that this consumer loyalty will boost the company long term. This should help Diageo fend off competition.I think Diageo makes a good addition to a diversified portfolio like mine. There’s growth potential and its dividend is respectable. It currently yields a little under 3%, comfortably covered by earnings. While there’s no guarantee it will continue, Diageo has managed to increase its dividend during the pandemic.The shares aren’t cheap, with a P/E ratio of 28x. But as a long-term investor, I think sometimes it’s worth paying for a quality business. For these reasons, I’ll be buying Diageo shares in my portfolio. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img