At the time Buffett began investing in the company, shares were trading for a few dollars a share.
Warren Buffett, CEO of Berk Hathaway, is one of the world’s great gurus. Among the various investment strategies he has taken, one of the oldest but still powerful is the decision to buy shares of Coca-Cola.
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In the state, the soft drink company started in 1988 and since then it has not stopped the ownership of said shares. Berk Hathaway currently owns 400 million Coca-Cola shares, which are valued at $22 billion and constitute about 8 percent of the company.
At the time Buffett started investing in the company, shares were trading for a few dollars a share, at which time Berkshire Hathaway ended up making huge returns on that investment. In addition, Coca-Cola’s dividend is worth 40 cents per quarter, which the company led by Buffett earns about $1 billion more per year.
Why does Warren Buffett choose these types of stocks?
Over the years and the great growth that the county’s biggest soft drink has gone through, highlight the success of this investment. However, it is unlikely that these shares will return the type of performance that Berk Hathaway has achieved due to the company’s current size.
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But it can be concluded that the type of money Buffett chooses. He likes Coca-Cola shares because, at the time, they are well-priced when the market is profitable. Coca-Cola has almost 50% of the soft drink market in the United States, soft drink to drink as, always to drink, it’s good.
But the second important note is that Coca-Cola creates value, that is, Buffett relies on “productive goods”, in the sense that they do work. That tendency can be seen in the policy of popular investors to stay away from cryptocurrencies.