There’s no doubt that Warren Buffett is one of the greatest investors that has had the most success in this world. But Buffett admittedly says that where he puts his money is a “pretty simple,” process.
One of Warren Buffett’s most successful investments – through his holding company Berkshire Hathaway – is purchasing shares of Coca-Cola. He first began buying the stock back in 1988. He stopped buying shares of Coca-Cola in 1994. By this time, the value of the shares in his investment had quadrupled to be worth $1.3 billion. Since then, over the last 20 years, the investment has skyrocketed even further.
When considering the overall value of the entire investment, and that doesn’t even count the quarterly dividend, Berkshire Hathaway has made an incredible gain of over $16 billion.
How did Warren Buffett make this incredible money by investing in Coca-Cola?
Buffett explains it in a video that his choice to invest extended much further beyond the financial statements and the value of the company. He looked at the company brand, its products, leadership and so much more. Although it was not very complicated, it was extremely thorough, as he gauged the income potential in relationship to the price.
Mr. Buffett would like for us to see “the important thing is to be in the right business with the right people,” as long as “you don’t go crazy in terms of what you paid for it.”
There are times when we believe that it’s only important to be concerned with a company and their underlying numbers. Other times, people tend to feel and think more in terms of the broader business prospects. But ultimately you have to realize that balancing both considerations is equally important.