Thinking of Following Warren Buffett Into Coca-Cola Stock? Read This First.
Warren Buffett is one of the better-known and successful investors. His Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio has consistently outperformed the S 500 (SNPINDEX: ^GSPC) since its inception in the mid-1960s. So respected is his reputation that some investors will assume a stock belongs on a buy list simply because Berkshire owns shares.
That may not be the case with Coca-Cola (NYSE: KO). Despite being a long-held position of Berkshire and a globally known iconic brand, the company's growth track and financials indicate it is not likely to serve new investors as well as it did Buffett and his team. Here's why.
Berkshire Hathaway acquired 400 million Coca-Cola shares in various lots between 1988 and 1994. By any measure, Buffett's investment instincts have paid off for Berkshire. The investment holding company spent around $1.3 billion to acquire its shares. After over 30 years of appreciation, those shares are now worth around $25 billion.
Source Fool.com
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