Warren Buffett, through his conglomerate Berkshire Hathaway, owns 400,000,000 shares of Coca-Cola (KO) stock. This significant holding represents a substantial portion of Berkshire Hathaway's investment portfolio.
A Core Holding in the Berkshire Hathaway Portfolio
Coca-Cola has been a cornerstone of Berkshire Hathaway's equity portfolio for decades, reflecting Warren Buffett's long-standing belief in the company's brand strength, consistent profitability, and global reach. This investment exemplifies Buffett's strategy of holding shares in well-understood businesses for the long term.
As of recent reports, Coca-Cola's shares constitute a notable percentage of the overall Berkshire Hathaway portfolio.
Key Holdings in the Berkshire Hathaway Portfolio
While Coca-Cola is a significant holding, it is part of a diverse portfolio managed by Warren Buffett and his team at Berkshire Hathaway. The table below illustrates Coca-Cola's position among some of Berkshire Hathaway's largest equity investments:
| Company | Shares Held | Percent of Portfolio |
|---|---|---|
| Apple (AAPL) | 300,000,000 | 26.24% |
| American Express (AXP) | 151,610,700 | 15.44% |
| Bank of America (BAC) | 797,683,307 | 11.88% |
| Coca-Cola (KO) | 400,000,000 | 10.79% |
Warren Buffett's Investment Philosophy and Coca-Cola
The enduring investment in Coca-Cola highlights several key tenets of Warren Buffett's investment philosophy:
- Brand Power: Buffett highly values companies with strong, recognizable brands and enduring consumer appeal. Coca-Cola's global brand dominance fits this criterion perfectly.
- Economic Moat: The company possesses a significant "economic moat" – a sustainable competitive advantage that protects its long-term profits and market share from competitors.
- Dividend Income: Coca-Cola is a consistent dividend payer, providing Berkshire Hathaway with a reliable stream of income, which can be reinvested or used for other purposes.
- Simplicity and Predictability: Buffett prefers businesses that are easy to understand and have predictable earnings, which Coca-Cola, as a consumer staple, largely provides.
This long-term holding underscores a strategy focused on intrinsic value and patient ownership, rather than short-term market fluctuations.
