Berkshire Hathaway Holds 400 Million Coca-Cola Shares Since 1994
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: NASDAQ.COM
- Stable Holdings: Berkshire Hathaway has maintained its 400 million shares of Coca-Cola since August 1994, reflecting a long-term trust in the stock, and while no additional shares have been purchased, its stable dividend yield continues to attract investor interest.
- Dividend Growth: Coca-Cola's quarterly dividend has increased from $0.20 per share at the time of Berkshire's last purchase to $212 million quarterly today, demonstrating the company's ongoing profitability and commitment to shareholder returns.
- Dividend King Status: With 64 consecutive years of annual dividend increases, Coca-Cola has earned the title of 'Dividend King', maintaining its appeal among investors seeking reliable dividends, despite limited growth potential in its stock price.
- Investor Choices: Although Coca-Cola's dividend performance is strong, the Motley Fool analyst team suggests that there are currently 10 stocks that are more worthy of investment, indicating a relatively conservative market stance towards Coca-Cola and urging investors to choose wisely.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to fall
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 80.410
Low
71.00
Averages
79.33
High
85.00
Current: 80.410
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa (EMEA); Latin America; North America; Asia Pacific, and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and Santa Clara. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technology-Driven Growth: The introduction of the Walmart+ subscription plan has proven successful, with members spending four times more than non-members, and the quarterly revenue from membership fees increased by double digits, showcasing effective service transformation.
- Advertising Revenue Surge: Advertising revenue grew by 36% this quarter, becoming a significant part of Walmart's income, and combined with online sales and subscription services, it creates a sustainable revenue growth model that enhances the company's future profitability.
See More
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- Earnings Performance and Market Reaction: Walmart's fiscal 2027 Q1 results largely met expectations, but the stock price fell due to below-expectation guidance for the upcoming quarter, with investors concerned about rising fuel costs impacting distribution and consumer spending.
- Technology-Driven Growth: Walmart enhances its competitiveness through technological innovations, with the Walmart+ membership program leading to members spending four times more than non-members, and a double-digit increase in membership fee revenue this quarter, indicating strong growth potential in subscription and advertising revenue.
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- High Market Valuation: The S&P 500 index's current P/E ratio stands at 27.5, significantly above the historical average of 19, indicating that the market may not be fully accounting for potential summer economic pressures, prompting investors to approach with caution regarding possible corrections.
- Rising Energy Prices: Geopolitical conflicts in the Middle East have sharply increased energy prices, with oil executives warning that the market is neglecting energy fundamentals, suggesting it may take months for markets to normalize, which could further elevate global inflation and recession fears.
- Berkshire's Cash Reserves: Berkshire Hathaway reported nearly $400 billion in cash at the end of Q1 2026, reflecting a cautious stance amid high market valuations, potentially providing a safety margin for conservative investors.
- Coca-Cola Investment Opportunity: Coca-Cola's P/E ratio is below its five-year average, and while not cheap, its 2.6% dividend yield offers investors a reliable cash flow, making it an attractive option for those seeking safety in a potential bear market.
See More
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- Valuation Warning: The S&P 500's current P/E ratio of 27.5x significantly exceeds the historical average of 19x, indicating that the market may not be fully accounting for potential summer economic headwinds, suggesting cautious investors should remain vigilant against possible corrections.
- Rising Energy Prices: Geopolitical conflicts in the Middle East have sharply increased energy prices, with oil executives warning that Wall Street is overlooking the fundamentals of the energy sector, which may take months to normalize, exacerbating global inflation and recession concerns.
- Cash Reserve Strategy: Berkshire Hathaway's nearly $400 billion cash position at the end of Q1 2026 highlights the necessity of conservative investment strategies in uncertain market conditions, especially as the S&P 500 hovers near all-time highs.
- Coca-Cola Investment Opportunity: While Coca-Cola's P/E ratio is below its five-year average and offers a 2.6% above-market dividend yield, analysts suggest that in the current market environment, investors should be cautious and consider other potential high-return stocks.
See More
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- Overview of High-Yield ETFs: The Vanguard High Dividend Yield ETF (VYM) includes 608 stocks with a current dividend yield of 2.24%, and while it has underperformed the S&P 500 over the past five years, it has outperformed it in 2026, indicating its potential for providing steady income during volatile periods.
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- Schwab Dividend ETF Performance: The Schwab U.S. Dividend Equity ETF (SCHD) holds 103 stocks with a dividend yield of 3.29%, and although its long-term performance has lagged behind VYM and the S&P 500, it has shown strong performance in 2026 with a year-to-date total return of about 17.8%.
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See More
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- Portfolio Diversification: The Vanguard ETF holds 608 stocks across various sectors, particularly in finance and technology, providing better diversification compared to the Schwab ETF's 103 stocks, thereby reducing single-sector risk.
- Dividend Yield Comparison: The Vanguard ETF offers a dividend yield of 2.24%, while the Schwab ETF provides a higher yield of 3.29%; despite the Schwab ETF's attractiveness in yield, the Vanguard's diversified portfolio may better withstand market fluctuations.
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