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Stefon Walters, The Motley Fool
Tue, Apr 8, 2025, 4:38 AM 5 min read
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Due to his occurrence -- some personally and done his company, Berkshire Hathaway -- Warren Buffett draws a batch of attraction erstwhile helium speaks and makes investing moves. With Buffett's nett worthy of implicit $150 cardinal and Berkshire Hathaway's marketplace headdress of implicit $1 trillion (as of April 7), it's casual to spot why.
People often look to Berkshire Hathaway's banal portfolio to get inspiration for investments they whitethorn privation to consider, particularly during turbulent marketplace times similar we're witnessing now. Buffett is known for investing successful high-quality businesses, which thin to clasp up amended during economical down periods.
Coca-Cola (NYSE: KO) has been 1 of Berkshire Hathaway's longest holdings and is presently 9.5% of its banal portfolio. Coca-Cola has 2 things that Buffett loves: an charismatic dividend and an economic/brand moat that can't beryllium replicated by its competitors.
Let's commencement with the dividend due to the fact that that's wherefore astir investors are attracted to Coca-Cola's stock. Its quarterly dividend is $0.51, with an mean output of astir 2.9% successful the past 12 months. That's much than treble the S&P 500 mean implicit that aforesaid time.
More awesome than its existent dividend is Coca-Cola expanding its yearly dividend for 63 consecutive years, earning it the rubric of a Dividend King. Its yearly dividend has doubled successful the past 13 years, outpacing galore different Dividend Kings.
If you're looking for a concern that tin past virtually immoderate economical information thrown its way, Coca-Cola is it. Its products merchantability careless of the economy, and it has pricing power, making it 1 of the much recession-resistant companies you tin find.
That doesn't mean Coca-Cola won't deed slumps oregon that its banal won't sometimes underperform, but it's an concern you tin stake connected returning worth implicit the agelong term.
One happening that separates Coca-Cola from its competitors is its immense organisation network. Coca-Cola products are sold successful implicit 200 countries, and its absorption connected conscionable beverages (unlike PepsiCo, which besides sells snacks and different foods) allows it to run much efficiently. That's partially wherefore PepsiCo's gross is much than treble that of Coca-Cola's, but Coca-Cola's nett income acold exceeds that of PepsiCo.