Warren Buffet continues to show investors why his name is consistently at the top of the list of richest Americans. The man makes deals that simply work, no matter what happens in the industry or economy surrounding him.

Take this week’s news as a prime example. Buffet wanted to diversify into the nuclear-power industry, so he offered to buy Constellation Energy Group (NYSE:CEG) for $4.7 billion. It was a pretty low bid and drew plenty of criticism from shareholders.

But most importantly, it drew bids from other competitors.

Shortly after Buffet made his bid, French utility giant Electricite de France stepped in and made an offer for just 50% of Constellation’s nuclear operations. It was willing to pay $4.5 billion.

Naturally, you would think Buffet would walk away from the deal with his tail between his legs. But you do not become a multi-billionaire without the savvy to hedge your bets. Buffet had a termination clause in his contract with Constellation that allowed him to prance away with almost $1.6 billion in profits after the proposed deal went sour. Not bad.

How does he do that?

With Buffet’s kind of investing intelligence, it is certainly no surprise to see another one of his prized holdings making bold moves today. Coca-Cola Enterprises (NYSE:CCE) boosted its 2008 earnings estimates this morning and issued a strong forecast for 2009. As I write, shares of the iconic company are up by more than 10%.

The economic maelstrom is having dramatic effects on the cola manufacturer, but the impact appears to be nothing the company’s management team cannot handle. The company is cutting unnecessary operations, increasing brand integrity and reducing supply chain waste. They are margin-increasing moves that will lower the company’s exposure to economic headwinds.

What is most intriguing is the impact macroeconomic factors are having on the company. With a well-known, inexpensive product, Coke does not have to worry about declining sales. It is not as if people need credit to buy a two-liter bottle of Sprite.

So while most firms are struggling from a lack of demand, Coke has the enviable position of actually being able to take advantage of the deflationary pressure storming the economy.

Today’s report shows how falling commodity prices are a boon to the company’s bottom line. The cheaper its inputs, the higher the company’s profit margins.

Repatriating profits

But what investors really need to pay attention to are currency fluctuations. Coca-Cola has a huge global exposure. Its products are sold through an array of currencies, but its profits are calculated in dollars.

If the dollar continues the downward spiral it is enduring this week, revenues repatriated from euros and yen could be significantly higher this time next year. Instead of one euro buying $1.37, right now the company can get $1.43. The story is even more dramatic with the yen.

The news from Coke is more proof that Buffet’s buy-what-you-use strategy has increasing merit.

Throughout the last few months, consumer staples like McDonalds (NYSE:MCD), Campbell Soup (NYCE:CPB) and General Mills (NYSE:GIS) have all proven to be strong, market-beating investments. That theme’s importance will only increase as the economy continues to slow.

If you are a traditional value investor like Buffet, look in your pantry for investing ideas. Stick with companies with broad economic exposure and a product lineup that will remain in high demand no matter how bad the economy gets.

It is how Buffet got rich and it is how you will boost your portfolio into something worth bragging about.

Source: Coca-Cola (CCE) teaches us a valuable lesson