Berkshire Hathaway began buying Coca-Cola shares in 1988, making Coca-Cola one of Warren Buffett’s best-known long-term investments.
Berkshire Hathaway’s purchase followed the 1980s “New Coke” episode, but Buffett and his company focused on the enduring strength of the Coca-Cola brand and its global distribution system. Berkshire accumulated a substantial position, and Coca-Cola became a prominent holding in its investment portfolio.
The Coca-Cola Company was founded in 1892, although the original Coca-Cola drink was created in Atlanta in 1886 by pharmacist John Stith Pemberton. The company sells beverages under many brands worldwide.
A frequent mistake is treating Berkshire’s Coca-Cola stake as an acquisition of the entire company. Berkshire bought shares rather than taking control of Coca-Cola. This distinction matters when discussing market capitalization, because a listed company’s value is based on all its publicly traded shares.