Connect with us

Business

Warren Buffett Has Held This Stock for Over 34 Years — Why He Will Never Sell

News Agencies

Published

on

Warren Buffett — the Oracle of Omaha — is widely regarded as one of the greatest investors of all time.

Berkshire Hathaway Inc. (NYSE: BRK-A) has returned tens of thousands of percent over the years and consistently outperforms the market. Buffett purchased the company for just $8.3 million in 1965, and it’s now valued at nearly $700 billion, roughly a 10 million percent return.

But one of Buffett’s top all-time picks and longest-held positions is one you might not expect. Berkshire Hathaway first started buying Coca-Cola Co. (NYSE: KO) stock in 1988 and continued accumulating shares since. Berkshire Hathaway now owns 400 million shares of Coca-Cola stock valued at a whopping $22 billion or about 8% of the company.

In the 1988 time period that Buffett began purchasing the company, the stock was sitting at a few dollars per share, so Berkshire Hathaway is sitting on massive gains in the company. Coke also issues a dividend worth 44 cents per quarter, so he gains nearly $1 billion per year in dividends on top of that.

While you’re unlikely to see those kinds of returns in Coca-Cola stock anymore because of its size, there are still value picks in the industry. For example, TruBrain is a startup that creates drinks and supplements focused on cognitive health and is currently valued at a fraction of what Coke was when Buffett invested in the company in 1988.

Buffett likes Coca-Cola stock for one reason — the same reason he likes every company that he invests in: value. This has two meanings. First, he is notorious for only investing if it’s the right price and not a penny more. Coca-Cola stock, at the time, was at a good price with an interesting competitive edge. Coca-Cola owns nearly 50% of the U.S. soft drink market, so as long as people are drinking soft drinks, Coke will be performing well.

Read More: This Startup Is Turning the Entire Venture Capital World On Its Head

Second, and perhaps more important, is that Coca-Cola creates value. Buffett likes “productive assets” in that they produce cash and make a product. The legendary investor has stayed away from things like cryptocurrency because it doesn’t produce anything.

Buffett has previously mentioned Coca-Cola in this sense. He noted how Coca-Cola produces nearly 2 billion drink servings per day. So if Coke needs to produce more profit, it could raise its drink prices by just 1 cent per serving and produce an extra $20 million per day.

Picks like this are Buffetts’ bread and butter, and he still likes Coca-Cola stock as much as the day he bought it. Coca-Cola has maintained its market dominance for decades, and as long as it keeps that up, Buffett is unlikely to sell.

See more on startup investing from Benzinga.

Photo: Fortune Live Media from Flickr.

Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Continue Reading
Advertisement

Breaking News

Advertisement

Editor Pick’s

Latest Entertainment

Entertainment5 hours ago

So emotional: ‘The Voice’ Season 22’s top eight compete in Whitney-themed semifinals

‘The Voice’ Season 22 top eight contestants Omar Jose Cardona, Bodie, Bryce Leatherwood, Justin Aaron, Parijita Bastola, Kim Cruise, Brayden...

Hollywood Actress Ellie kemper Spotted in Anjali phougat Jewels by designer dream collection Hollywood Actress Ellie kemper Spotted in Anjali phougat Jewels by designer dream collection
Entertainment5 hours ago

Hollywood Actress Ellie kemper Spotted in Anjali phougat Jewels by designer dream collection

Anjali Phougat is an Ohio-based fashion designer, film fashion wardrobe stylist, entrepreneur, and founder of a luxury fashion brand called Designer...

Entertainment12 hours ago

John Travolta pays tribute to Kirstie Alley: ‘I know we will see each other again’

John Travolta and Kirstie Alley promote the 1989 movie “Look Who’s Talking.” (Photo: TriStar Pictures/Courtesy Everett Collection) The death of...

Entertainment13 hours ago

Kirstie Alley Dead: Star of ‘Cheers’ and ‘Drop Dead Gorgeous’ Dies at 71

CelebrityUS Magazine ‘General Hospital’ Star Jack Wagner’s Son Harrison’s Cause of Death Revealed Amid Scholarship Launch General Hospital star Jack Wagner’s son...

Entertainment13 hours ago

Kirstie Alley Dead: Star of Cheers Dies at 71 After Short Battle with Cancer

https://www.instagram.com/p/ClzqliopUks/?igshid=YWJhMjlhZTc%3D lley Verified • Liked by pradalover__ and others kirstiealley’s profile picture kirstiealley Verified To all our friends, far and...

Entertainment14 hours ago

Morgan Wallen Will Take 2023 ‘One Night at a Time’ on a Massive World Tour

morgan-wallen-tour.jpg 2022 iHeartRadio Music Festival – Night 1 – Show – Credit: Matt Winkelmeyer/Getty Images Morgan Wallen will be chasin’...

Entertainment15 hours ago

38 women accuse director James Toback in new lawsuit of prowling the streets of NYC to lure and sexually abuse, assault, or batter them

James Toback.Thomson Reuters James Toback “prowled” NYC to lure women using his status in the industry, a new lawsuit claims....

Entertainment15 hours ago

Box Office Bust: ‘Black Adam’ Faces Theatrical Losses

“Black Adam” has hardly been given a hero’s welcome in its box office run, generating just $387 million globally after...

Latest Sports

Sports31 mins ago

World Cup scores, highlights: Croatia tops Japan in PK shootout; Brazil steamrolls South Korea

Croatia's dramatic win over Japan early Monday results in a Friday date with Brazil after the Brazilians eliminated South Korea...

Sports51 mins ago

UConn’s fraught scoring struggles were exposed after Azzi Fudd’s injury

Not having her production to bail the Huskies out put a spotlight on what needs to be fixed, particularly if...

Sports1 hour ago

The most interesting thing about each of the NBA’s five worst teams

Even bad teams playing out the string feature some things worth keeping an eye on … and maybe even getting...

Sports2 hours ago

The Morning Pitt: Quarterbacks gone wild

If it seemed like there was a lot of quarterback activity for Pitt on Monday, it's because there was.

Sports2 hours ago

Here’s where the Bears stand in the 2023 NFL draft after Week 13

The Chicago Bears have the No. 2 overall pick in the NFL draft after losing to the Packers in Week...

Sports3 hours ago

UCLA women’s soccer rallies to beat North Carolina, win national title on wild last-second goal

UCLA rallied from a late 2-0 hole to beat North Carolina in double overtime on Monday night in the women's...

Sports3 hours ago

Bruins-Golden Knights takeaways: Vegas ends Boston’s home win streak

The Bruins' record home win streak ended Monday night against their former coach, Bruce Cassidy, in an emotional game at...

Sports4 hours ago

Steph Curry addresses fake viral video of five straight full-court shots

Steph Curry didn't actually make five straight full-court shots, as a viral video portrays, but he wanted everyone to know...

Technology Hot News

Is Elon Musk Really Going to Buy Twitter? Is Elon Musk Really Going to Buy Twitter?
Technology1 month ago

Is Elon Musk Really Going to Buy Twitter?

Elon Musk, the owner of the electric car company Tesla, CEO of SpaceX, and the richest man in the world,...

WhatsApp services were affected across Pakistan, restored after 2 hours WhatsApp services were affected across Pakistan, restored after 2 hours
Technology1 month ago

WhatsApp services were affected across Pakistan, restored after 2 hours

WhatsApp services were affected in various countries of the world, including Pakistan, and India due to this users were facing...

Bitcoin vs Litecoin: A guide to understanding cryptocurrencies Bitcoin vs Litecoin: A guide to understanding cryptocurrencies
Technology2 months ago

Bitcoin vs Litecoin: A guide to understanding cryptocurrencies

Cryptocurrencies currently occupy an odd place in society. They are no longer the super niche bizarre currency beloved by tech...

Personal data of people is selling on Google Play and Google Ads Personal data of people is selling on Google Play and Google Ads
Editor Picks3 months ago

Personal data of people are sold on Google Play and Google Ads

It’s been two to three years since Google has been unknowingly hosting multiple apps from malicious actors who sell personal...

Protonmail is down a second time in the past 24 hours Protonmail is down a second time in the past 24 hours
Technology5 months ago

Protonmail is down a second time in the past 24 hours

An end-to-end encrypted email service Protonmail is down a second time in the past 24 hours, netizens reported on social...

What's better for the student: a tablet or a laptop What's better for the student: a tablet or a laptop
Technology7 months ago

What’s better for the student: a tablet or a laptop

Some analysts argue that computers have outlived their usefulness. There is some truth in this: PC and laptop sales are...

Tesla founder Elon Musk holds the Twitter deal temporary Tesla founder Elon Musk holds the Twitter deal temporary
Technology7 months ago

Tesla founder Elon Musk holds the Twitter deal temporary

USA: Elon Musk, the founder of companies like Tesla and SpaceX, can actually buy anything in the world. Last month,...

How Zafar Supari is utilizing his ability on Snapchat? How Zafar Supari is utilizing his ability on Snapchat?
Technology7 months ago

How Zafar Supari is utilizing his ability on Snapchat?

Pakistan: Zafar Supari a public figure, businessman, and social media sensation has crossed one hundred thirty-three thousand 133k subscribers on...