©Reuters.
Investing.com – Renowned investor Warren Buffett, known as the “Oracle of Omaha” for his intuition, is Berkshire Hataway (NYSE:) has recovered tens of thousands of percent over the years since its inception and has consistently outperformed the market. In 1965, Buffett bought the company for just $8.3 million, and it is now valued at nearly $700 billion, or about 10 million percent of revenue. writes yahoo.
Buffett started buying stock for the first time Coca Cola Co. (NYSE:) in 1988 and has continued to accumulate shares without selling them ever since. Berkshire Hathaway owns 400 million Coca-Cola shares worth $22 billion, or about 8 percent of the company. When he started buying shares in the company, they cost a few dollars a share, so Berkshire Hathaway made huge profits. The company also pays a dividend of 44 cents a quarter, so it receives nearly $1 billion a year in dividends.
The main reason Buffett likes Coca-Cola stock is its value. First, invest only if the stock is priced right and not a cent higher. Coca-Cola shares were cheap at the time and had an attractive competitive edge, as Coca-Cola owns nearly 50% of the soft drink market in the United States.
Secondly, and perhaps more importantly, Coca-Cola creates value. Buffett likes “production goods” because they bring in money and produce a product, unlike cryptocurrency itself, because it produces nothing.
The fact that Coca-Cola produces nearly 2 billion drinks a day means that if it needs to increase its profits, it can raise the price of its drinks by as little as 1 cent per serving and make another $20 million a day.
— Yahoo materials were used in the preparation
