Why Coca-Cola Has Been In Warren Buffet's Portfolio For 33 Years?

Beverage giant Coca-Cola (NYSE: KO), with Berkshire's annual yield of 52 percent on an initial investment basis, has been in Buffet's investment portfolio for 33 years. Coca-Cola is making history as Buffet's longest affiliated holding. 400 million shares owned by Berkshire cost $ 1.299 billion, which makes $ 3.2475 per share. Coca-Cola has increased its dividend amount to $ 1.68 in the report announced in February, and the annual dividend amount it has increased for 59 consecutive years is a feature that cannot be underestimated.

Buffett and his team predict that they will achieve a 52 percent return in 2021.

We can say that it is a move worth being patient and letting your investment thesis come to an end.   What makes Coca-Cola such a special stock is the combination of factors of geographic reach and superior marketing. Coca-Cola, which operates in every country in the world except North Korea and Cuba, has 20 percent of the cold drink market share in developed markets and 10 percent of the cold drink share in fast-growing developing markets.

In its portfolio, it has at least 20 brands with annual sales of more than $ 1 billion.

Coca-Cola also continues to do great marketing! Although the company has gained many generations with its advertisements on the holidays, social, print media, television and radio. Coca-Cola never surprises Wall Street with its growth rate. However, investors are starting to rely on the beverage giant's predictable cash flow and single-digit mid-sales growth. It is pertinent to say that Buffett is unlikely to divest Coca-Cola as long as Berkshire Hathaway is in charge of its investment portfolio.   Why Coca-Cola Has Been In Warren Buffet's Portfolio For 33 Years? Source: https://www.fool.com/ You may also be interested in:

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