Warren Buffett’s famous love for Coca-Cola is more than just a personal preference — it is one of the most successful investment stories in modern finance. His company, Berkshire Hathaway, earns an extraordinary $816 million (over Rs 6,800 crore) every year just in dividends from Coca-Cola, a product sold for under Rs 40 in local Indian stores.
Berkshire Hathaway owns nearly 400 million shares of The Coca-Cola Company, giving it close to 9% ownership in the global beverage giant. This massive holding now earns Buffett more than $93,000 (Rs 78 lakh) every hour in dividend income — without selling a single share.
The investment
CA Nitin Kaushik recently broke down this story on X (formerly Twitter), highlighting how Buffett made the move that many investors at the time dismissed.
In 1988, in the aftermath of the 1987 stock market crash, Buffett invested $1.3 billion into Coca-Cola. Critics ridiculed him for betting big on what they called “a sugary drink company.” But Buffett stayed unfazed, not only holding on but later adding more whenever he felt strongly about the business.
By 1994, Berkshire had completed its Coca-Cola purchases — and has never sold a single share in more than 30 years.
From Rs 1.3 billion to Rs 28 billion
The numbers tell the story of one of the greatest compounding miracles in investing history:
Initial investment (1988–94): $1.3 billion
Current value: Over $28 billion
Annual dividend income (2025): $816 million
Yield on original cost: Nearly 60%
Coca-Cola has raised its dividend for more than 60 consecutive years, turning the stock into a reliable, inflation-beating income machine for Berkshire Hathaway.
Buffett’s affinity for Coca-Cola goes beyond numbers — he famously drinks five cans of Coke a day. He once joked, “I’m one-quarter Coca-Cola,” emphasising his belief that investors should invest in what they understand and genuinely believe in.
Coca-Cola and Buffett’s philosophy
Experts say the investment is a classic example of Buffett’s long-term value investing principles:
A durable competitive advantage — one of the strongest global brands
A simple, predictable business model
Strong free cash flows
Steadily rising dividends
Global distribution and pricing power
For Buffett, Coca-Cola wasn’t just a stock — it was a company with a moat, capable of surviving and thriving for decades.
Lessons for investors
As CA Nitin Kaushik notes, Buffett’s Coca-Cola story is a reminder that wealth is built with patience, conviction, and discipline — not constant trading:
“Your multibagger might already be in your portfolio. Stop treating it like a lottery ticket — let compounding do its magic.”
Buffett’s Coca-Cola investment shows that sometimes, one great stock held for decades can generate more wealth than chasing dozens of short-term ideas.
And for Buffett, that great stock just happens to be the same drink he enjoys every day.