Warren Buffett, the Oracle of Omaha, is the world’s top investor. While there are many others who have done well in the stock market, Buffett is by far the best. His track record for beating the S&P is outstanding, and people across the globe are clamoring to learn how to copy Buffett’s success.
Of course, while even the Oracle of Omaha makes mistakes, there are quite a few investments where he’s come out on top. In fact, one of his investments has, since the time he began purchasing the stock, skyrocketed to more than 13 times the price he originally paid. That stock is Coca-Cola.
Buffett first began buying shares of the fizzy beverage company in 1988 and it is one of the stocks Buffett has held on to the longest. When he first purchased the stock, stated that it was a stock he intended to hang on to for a long time.
“In 1988 we made major purchases of Federal Home Loan Mortgage Pfd. (“Freddie Mac”) and Coca Cola. We expect to hold these securities for a long time,” Buffett wrote in his 1988 Shareholder Letter. “In fact, when we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
At the time, Buffet owned slightly less than 15,000,000 shares. Since then, Buffett’s investment has grown, as has its value. He currently owns around 400,000,000 shares (around 9.4%) which are worth around $16.6 billion. That translates to a gain of more than 1200% from the initial purchase price. And that’s not including the dividends that Buffett has collected over the years, which amounts to a staggering figure. In 2017 alone, Buffett is expected to collect around $592 million in dividends from Coca-Cola, The Motley Fool reported.
Of course, this is far from the only success Buffett has had in the stock market. In fact, although Buffett himself qualifies his purchase of Berkshire Hathaway as his biggest blunder, during the 50 years of his leadership the stock value of Berkshire has skyrocketed from around $11 per share to $250,000 per share.