Warren Buffett: 19 Coca-Cola transactions (Berkshire Hathaway / KO) (2024)

FAQs

What if I invested $1000 in Coca-Cola 10 years ago? ›

You would have more than doubled your money, with a total investment worth of $2,029.55. That's a 103% return, or a 7.23% annual rate of return.

Buffett started buying shares of the world's biggest nonalcoholic beverage maker in 1987 and continued adding to the position for a period of seven years. Those 400 million shares haven't budged since. In fact, he has even described his holding on to Coca-Cola as "a Rip Van Winkle slumber."

Warren Buffett Coca-Cola Co

The investor owns 9.32% of the outstanding Coca-Cola stock. The first Coca-Cola trade was made in Q4 1998. Since then Warren Buffett bought shares ten more times and sold shares on eight occasions. The stake costed the investor $13.2 Billion, netting the investor a gain of 117% so far.

To generate $5,000 per month in dividends, you would need a portfolio value of approximately $1 million invested in stocks with an average dividend yield of 5%. For example, Johnson & Johnson stock currently yields 2.7% annually. $1 million invested would generate about $27,000 per year or $2,250 per month.

The table below shows the present value (PV) of $1,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $1,000 over 20 years can range from $1,485.95 to $190,049.64.

Warren Buffett was a major shareholders in Walmart until 2016, when he sold most of Berkshire Hathaway's stake in the retailer. At that time, Buffett cited Jeff Bezos and Amazon as a threat that made retail stocks a “tough” game.

Largest shareholders include Berkshire Hathaway Inc, Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Fmr Llc, Morgan Stanley, and Jpmorgan Chase & Co .

Warren Buffett is one of the wealthiest people in the world, with a net worth estimated at over $133 billion. Despite his wealth, the legendary investor and Berkshire Hathaway Inc. CEO lives a frugal lifestyle, preferring the simple pleasures of a McDonald's hamburger over extravagant dining.

Warren Buffett's Berkshire Hathaway (NYSE:BRK) owns 400 million shares of The Coca-Cola Company (NYSE:KO) stock, which is roughly 9.3% of the company. And it's a significant stake for Berkshire, representing approximately 6.5% of its portfolio.

Berkshire Hathaway

The Coca-Cola Company / Owner

Who is the owner of Berkshire Hathaway? ›

Berkshire Hathaway is a holding company run by Warren Buffett that owns a diverse range of private businesses and significant minority interests in public companies such as Apple.

Now in its 62nd year of consecutive dividend raises, Coca-Cola pays a quarterly dividend of $0.485 per share, which shakes out to an annual yield of 3%. Considering the S&P 500 yields approximately 1.3%, the beverage giant is a favorite stock for income seekers.

Warren Buffett's Berkshire Hathaway made a significant investment in shares of beverage giant Coca-Cola in 1988 when the stock's price was depressed following a market crash. Buffett and others at Berkshire recognized Coca-Cola's market advantages, believing that the company was poised to recover.

Definition of 10 Year Price Total Return

Ten Year Stock Price Total Return for Coca-Cola is calculated as follows: Last Close Price [ 71.85 ] / Adj Prior Close Price [ 30.69 ] (-) 1 (=) Total Return [ 134.1% ] Prior price dividend adjustment factor is 0.73.

So imagine you put $1,000 into either fund 10 years ago. You'd be up to roughly $3,282 with VOO or $3,302 from SPY. That's not exactly wealthy, but it shows how you can more than triple your money by holding an asset with relatively low long-term risk.

That marks an 88.66% increase in value, or an average annual return of 8.86% (not calculated for compounding). If you had invested $1,000 in gold a decade ago, it would be worth $1,886.56 today.

This means that your $1,000 10 years ago — technically, $1,002 — would have bought 60 shares of Tesla. As of Mar. 3, 2024, those 60 shares of Tesla would be worth $12,158.40. That marks a 28.342% annual rate of return.