Of course! Here is a detailed post on Berkshire Hathaway's ownership of Coca-Cola, designed to be engaging and informative.
How Much of Coca-Cola Does Berkshire Hathaway Own? A Deep Dive into an Iconic Investment
Have you ever wondered about the financial magic behind Warren Buffett's incredible success? The Oracle of Omaha is famous for his long-term, value-based investing, and few of his holdings tell this story better than his stake in The Coca-Cola Company. It's a classic example of identifying a fantastic business and holding on to it for decades, letting the power of compounding work its wonders.
Let's dive in and uncover the details of this legendary investment, step by step.
Step 1: The Foundation - How It All Began
To truly understand the current ownership, we have to travel back in time. So, imagine this: It's the late 1980s, and the stock market has just recovered from the crash of 1987. A lot of investors are nervous, but Warren Buffett sees an opportunity. He begins to quietly accumulate shares of a company with a globally recognized brand, a simple product, and a powerful business model: Coca-Cola.
Did you know? Buffett's initial major investment in Coca-Cola began in 1988. He saw a company with a durable competitive advantage, a wide "economic moat" as he calls it, that was selling a product people loved and would continue to buy regardless of the economic climate. This was the start of a beautiful, long-term relationship.
Step 2: The Core Holding - The Shares and Value Today
Now, let's fast-forward to the present. The question isn't just about the number of shares, but what that translates to in terms of value and ownership percentage.
Sub-heading: The Fixed Number of Shares
This is one of the most interesting aspects of this investment. Berkshire Hathaway has not bought a single share of Coca-Cola in a very long time. Yet, their ownership stake has grown over the years due to Coca-Cola's own share buyback programs. As of the most recent filings (Q1 2025), Berkshire Hathaway owns a stunning 400 million shares of The Coca-Cola Company.
This number has remained constant for many years, showcasing Buffett's "favorite holding period is forever" philosophy. He bought what he wanted and then just let it sit and appreciate.
Sub-heading: The Value of the Holding
While the share count has been steady, the value of that holding has fluctuated with Coca-Cola's stock price. As of late June 2025, with Coca-Cola's stock price hovering around $70-71 per share, the value of Berkshire Hathaway's stake is approximately $28 billion.
To put that into perspective, Buffett's initial investment in the late 1980s was around $1.3 billion. This represents a monumental return on investment, not even including the massive dividends received over the decades.
Sub-heading: Percentage of the Company Owned
Based on the number of outstanding shares of Coca-Cola, Berkshire Hathaway's 400 million shares translate to an ownership stake of approximately 9.3% of the entire company. This makes Berkshire Hathaway The Coca-Cola Company's largest single shareholder.
Step 3: The Dividend Machine - An Income Stream Like No Other
This is where the magic of compounding really shines. Berkshire Hathaway's investment in Coca-Cola is not just about capital appreciation; it's also a powerhouse for dividend income.
Sub-heading: The Growing Dividend Payout
Coca-Cola is a dividend king, having increased its dividend for over 60 consecutive years. When Buffett first invested, the dividend was much smaller. But because the number of shares Berkshire owns is so large, every small increase in the dividend per share results in a massive jump in income for Berkshire Hathaway.
In 2024, Coca-Cola raised its quarterly dividend to 48.5 cents per share. With 400 million shares, this means Berkshire Hathaway is set to receive a whopping $194 million per quarter in dividends from Coca-Cola. That's an incredible annual income of around $776 million!
Think about that for a second: Berkshire Hathaway is receiving more than half of its entire initial investment back in dividends every single year, without having to sell a single share. This is the ultimate example of a "money tree" investment.
Step 4: The Takeaway - What This Teaches Us About Investing
The Coca-Cola investment is more than just a stock position; it's a living lesson in Buffett's investment philosophy.
Patience is a Virtue: Buffett didn't trade in and out of the stock. He bought a great company at a good price and held it for over 35 years.
Focus on the Moat: He invested in a business with a strong brand and a loyal customer base that would be difficult for competitors to replicate.
The Power of Dividends: The consistent, growing dividend payments have turned this investment into a reliable income source for Berkshire Hathaway, a testament to the power of dividend growth and compounding over time.
FAQs: Your Quick Guide to the Coca-Cola and Berkshire Hathaway Connection
Here are 10 related questions that will help you understand this iconic investment even better.
How to find out Berkshire Hathaway's latest holdings? You can find Berkshire Hathaway's latest holdings by reviewing their Form 13F filings, which are submitted to the U.S. Securities and Exchange Commission (SEC) every quarter.
How to calculate the value of Berkshire's Coca-Cola stake? You can calculate the value by multiplying the number of shares (400 million) by the current market price of Coca-Cola's stock (KO).
How to understand why Warren Buffett loves Coca-Cola? Buffett loves Coca-Cola for its powerful, global brand, its consistent earnings, and its ability to raise prices without losing customers. He sees it as a business with a very strong "economic moat."
How to track Coca-Cola's dividend history? You can track Coca-Cola's dividend history on financial websites like Yahoo Finance, Nasdaq, or the company's own investor relations page.
How to start investing in dividend stocks like Coca-Cola? To start investing in dividend stocks, you can open a brokerage account and purchase shares of companies like Coca-Cola. It's important to research companies with a history of consistent dividend payments.
How to learn more about Warren Buffett's investment philosophy? You can learn more about Buffett's philosophy by reading his annual letters to Berkshire Hathaway shareholders, his biography "The Snowball," and other books on value investing.
How to understand an "economic moat"? An "economic moat" is a term coined by Warren Buffett to describe a company's sustainable competitive advantage that protects its long-term profits and market share from competing firms.
How to find out what percentage of Coca-Cola shares are owned by institutions? You can find institutional ownership data for a company on financial data providers like Nasdaq, which show the percentage of shares held by institutions like mutual funds, pension funds, and investment firms.
How to interpret a stock's dividend yield? A dividend yield is the dividend per share divided by the stock's price, expressed as a percentage. It helps you understand the annual return you can expect from dividends in relation to the stock's price.
How to see the impact of stock splits on a company's share count? A stock split increases the number of shares while decreasing the price per share proportionally. For example, a 2-for-1 split doubles the shares you own but halves their price, so the total value remains the same.