Warren Buffett began investing in Coca-Cola in 1988.
Berkshire Hathaway started building its Coca-Cola position after Buffett became convinced that the company’s global brand, distribution system and familiar products could produce durable returns. In his 1988 shareholder letter, Buffett said Berkshire expected to hold the securities for a long time, reflecting his preference for owning outstanding businesses rather than trading short-term price movements.
Berkshire ultimately bought roughly 7% of Coca-Cola for about $1.02 billion. The investment became one of the clearest examples of Buffett’s consumer-brand strategy and remained a major Berkshire holding for decades. Buffett had also been a longtime Coca-Cola drinker, but personal familiarity alone was not the investment thesis.
The date is sometimes confused with Berkshire’s investments in companies such as American Express, which began earlier. Coca-Cola is also distinct from PepsiCo, Dr Pepper and Monster Beverage, all separate beverage businesses.