Warren Buffett : Coca Cola - Dividends - Compounding

In his latest Berkshire Hathaway newsletter, Warren Buffett gave a snapshot of his investment into Coca-Cola. This is a very insightful story about investing in a great company whilst undervalued and holding for the long term. It further demonstrates the value of holding a great company that pays dividends and also grows over time.

Warren states......"In August 1994 – yes, 1994 – Berkshire completed its seven-year purchase of the 400 million shares of Coca-Cola we now own. The total cost was $1.3 billion – then a very meaningful

sum at Berkshire.

The cash dividend we received from Coke in 1994 was $75 million.

By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays. All Charlie and I were required to do was cash Coke’s quarterly dividend checks. We expect that those checks are highly likely to grow....."

Amazing hey!!

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