Coca-Cola Inc (NYSE: KO) has been a favorite stock of legendary investor Warren Buffett for decades. The beverage giant has been a staple holding in the portfolio of his company Berkshire Hathaway Inc (NYSE: BRK-A) since 1988.
If you had invested $1,000 in Coca-Cola stock when Warren Buffett did, your investment would now be worth an impressive $27,000. According to data from CNBC calculations based on Berkshire Hathaway's annual letters to shareholders and adjusted for stock splits and dividends reinvested.
Buffett first bought shares of Coca-Cola in 1988 at a price of around $2.50 per share. Since then, the stock has split twice and now trades at around $56 per share with an annual dividend yield of approximately 3%.
Over the years, Coca-Cola has proven to be a resilient company that continues to grow despite economic downturns and changing consumer tastes. The brand is recognized globally as one of the most valuable in the world.
In addition to its flagship product Coke, Coca-Cola also owns other popular brands such as Fanta and Sprite. The company's diversification into non-carbonated drinks such as bottled water and tea has helped it stay relevant amidst changing consumer preferences towards healthier options.
Warren Buffett's investment strategy is centered on buying high-quality companies with strong competitive advantages that have long-term growth potential. His investment in Coca-Cola is a testament to this philosophy.
Investors who followed his lead by investing early in Coca-Cola have reaped significant rewards over time. And while past performance isn't always indicative of future results - with continued growth prospects and steady dividend payouts - it may still be worth considering adding shares of this iconic American brand to your portfolio today.