In 2024, Warren Buffett’s company, Berkshire Hathaway, is expected to earn $776 million in dividends from Coca-Cola. Buffett, who has been a fan of Coca-Cola for many years, drinks five cans of it every day.
Buffett’s investment in Coca-Cola is one of the most well-known stories in investing. Berkshire Hathaway will collect $776 million in dividends due to Coca-Cola’s recent increase in its quarterly dividend to 48.5 cents per share, up from 41 cents last year.
With 400 million shares, this payout adds up significantly. Buffett has held these shares for nearly three decades, and they represent a big part of his investment portfolio.
Buffett’s appreciation for Coca-Cola goes beyond money. At 94 years old, he enjoys the drink itself, consuming it as part of his daily calorie intake. He once said, “If I eat 2,700 calories daily, a quarter of that is Coca-Cola.” Despite being the largest shareholder in Coca-Cola, he does not receive special treatment.
His wife, Astrid, often looks for bargains, and Buffett’s daughter, Susie, commented that “Astrid is more likely to find out where it’s on sale and buy it on sale.”
Interestingly, Buffett wasn’t always a fan of Coca-Cola. For nearly 50 years, he preferred Pepsi and was nicknamed “Pepsi Warren” by his son, Howard. His love for Coca-Cola began in the 1980s, thanks to his neighbor, Don Keough, who introduced him to Cherry Coke.
Keough, who later became president and COO of Coca-Cola, sent samples to Buffett, who quickly became a fan. In 1986, Buffett named Cherry Coke the official drink of Berkshire Hathaway’s annual meeting. This move solidified his loyalty to the brand.