When you think of Warren Buffett, one of the world’s most legendary investors, several things come to mind: his long-term investing philosophy, value investing, and his love for simplicity. But there’s another constant in his life that’s become nearly as iconic as the man himself—Coca-Cola. Buffett’s fondness for the sugary beverage isn’t just a quirky personal trait—it’s been one of the most profitable investments of his storied career.
Buffett first bought shares of Coca-Cola in 1988, in the aftermath of the 1987 stock market crash. Through his company, Berkshire Hathaway, he invested about $1.3 billion into Coca-Cola stock. At the time, it was a bold move, but also a classic Buffett play: buying a high-quality company at a reasonable price when others were fearful. Fast forward to today, that investment has grown exponentially—both in market value and in dividends.
As of now, Berkshire Hathaway owns more than 400 million shares of Coca-Cola, representing over 9% of the company. The value of this stake has soared to over $25 billion, and that’s not even the best part. Coca-Cola pays a strong dividend, and with Buffett’s huge stake, Berkshire rakes in over $700 million annually in dividends from Coke alone. That means Buffett is essentially earning back more than half of his original investment every two years—just in dividend income.
Buffett’s loyalty to Coca-Cola goes beyond the numbers. He’s famously said that he drinks five cans of Coke a day—usually three during the workday and two at night. He even joked in interviews that “one quarter of all the calories I consume come from Coca-Cola.” It’s this rare mix of personal passion and sound financial judgment that makes his Coke investment such a standout.
But why does Buffett love Coca-Cola so much from a business perspective? The answer lies in his core investing principles. He looks for businesses with strong brand loyalty, consistent earnings, global reach, and pricing power. Coca-Cola checks all those boxes. It’s a company that sells an emotional connection, not just a drink. People across the world associate Coca-Cola with happiness, celebration, and nostalgia.
Even during economic downturns, Coca-Cola performs well. People may cut back on luxury items, but they still buy affordable indulgences like a can of soda. Buffett understood this psychological and economic reality decades ago—and has profited handsomely because of it.
In today’s flashy world of tech stocks and crypto, Buffett’s investment in a century-old beverage company might seem boring. But that’s the beauty of it. The Coca-Cola investment is a timeless example of buying what you understand, holding it for decades, and letting the power of compounding do its work.
So yes, Warren Buffett’s love for Coca-Cola may be iconic. But more than that—it’s insanely profitable. 🥤💰
