Probably essentially the most well-known funding story of all time is that of Warren Buffett’s funding in Coca-Cola. In 2024, Berkshire Hathaway, Buffett’s large funding firm, is ready to gather $776 million in dividends from Coca-Cola.
Due to Coca-Cola’s latest increase of its quarterly dividend to 48.5 cents per share—it was $0.41 within the prior 12 months—the 400 million shares are due for a payout. Dividing by the fee per share—$0.485 and paid quarterly—for 400 million shares equals an excellent complete for one 12 months. The shares are a terrific rainmaker for an funding that Buffett has held for the higher a part of three many years.
His 400 million shares, valued at over $25 billion, kind a major a part of his portfolio.
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Buffett’s admiration for Coca-Cola goes past its monetary worth
The 94-year-old can be a lifelong fan of the product itself, consuming 5 cans a day. “If I eat 2,700 energy day by day, 1 / 4 of that’s Coca-Cola. I drink at the very least 5 12-ounce servings. I do it on daily basis,” Buffett informed Fortune in 2015.
Despite being Coca-Cola’s largest shareholder, Buffett doesn’t get particular perks. His spouse, Astrid, is understood to buy the “soda on sale”. According to Buffett’s daughter, Susie, “Astrid is extra more likely to attempt to discover out the place it’s on sale and purchase it on sale.”
Coca-Cola holds a particular place in Buffett’s life — even when he nonetheless prefers to purchase it at a reduction.
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Surprisingly, Buffett wasn’t at all times a Coca-Cola fan. For almost 50 years, he drank Pepsi, incomes the nickname “Pepsi Warren” from his son, Howard. His swap to Coke got here within the Nineteen Eighties, due to a longtime neighbour, Don Keough. Keough, who later turned Coca-Cola’s president and COO, launched Buffett to Cherry Coke, dubbing it the “nectar of the gods.” Keough despatched him samples, and Buffett was hooked. In 1986, he declared Cherry Coke the official drink of Berkshire Hathaway’s annual assembly, solidifying his loyalty to the model.