Warren Buffett and Coca-Cola

Warren Buffet and coca cola are inseparable because his intrigue for the drink runs deep, he has ever drunk 5 cans in a day to enable him to meet his daily energy requirement. Warren being a loyal customer and with his love for the products, he decided to invest in the company in 1987 by buying up to 4million shares worth $1 billion. Coca-cola is currently one of the subsidiary companies of Berkshire Hathaway. Coca-cola has been a strong and consistent dividend provider for Berkshire holds approximately 10% of all outstanding shares of the company.

Coca-Cola Company produces more than 500 beverages which are non-alcoholic and include drinks like energizer drinks, juices, water and many more. This accounts up to 2 billion worldwide of beverage consumption on a daily basis. Its management has been constantly improving their production through diversification of products, in adapting the trend of consumer tastes. The non-carbonated drinks earn the company nearly one-third of its revenue, making the company number one beverage company around the globe.
Warren Buffet likes the way the company has been expressing its adaptability to changes in market trends.

Mr. Buffett prefers to invest in coca cola through Berkshire Hathaway, which has been a pillar of its portfolio. The investment gives him the company’s stock portfolio through Berkshire’s coca cola stake through its subsidiary businesses. Coca-cola constitutes about 4% of Berkshire Hathaway portfolio. Coca-cola has been improving on its annual gains since Mr. Warren first put in his investment. The gains continue to skyrocket to more than 11 percent.

It is delighting to know that other investors in the company continue to see the tremendous income from their investment, they also see their share value improve gradually over the years. Warren Buffet once said that even if he is given $100 billion to leave Coca Cola, he would return the money and keep the company by his side. It’s evident that Buffet loves coke both as a beverage and as an investment company.

Leave a Reply

Your email address will not be published. Required fields are marked *