Billionaire investor Warren Buffett bought Coca-Cola (NYSE:KO) stock for Berkshire Hathaway's (NYSE:BRK)(NYSE:BRK) investment portfolio back in 1988.
That investment has paid off well over the years for Buffett and investors, and, with shares near an all-time high, continues to do so even after Buffett stepped down from the CEO role.
Coca-Cola Stock Surge
Shares of Coca-Cola surged on Tuesday after reporting first-quarter financial results. The company beat the analyst’s estimate for both revenue and earnings per share.
Quarterly revenue of $12.5 billion was up 12% year-over-year, with organic revenue up 10%.
"We've had a strong start to the year," Coca-Cola CEO Henrique Braun said after the results.
Braun said the performance is driven by a focus on consumers and on bringing more packaging options, amid macroeconomic uncertainties and high inflation.
Coca-Cola stock gained 3.9% on Tuesday, with shares trading between $78.08 and $80.32. With the post-earnings surge, Coca-Cola stock traded close to its all-time high of $82 set back in February.
The beverage stock has been a top performer in 2026, with shares up 13.4% year-to-date. This is outperforming beverage peer PepsiCo (+9.9%) and the broader S&P 500 (+4.0%).
Buffett's Bet Pays Off
Berkshire Hathaway owns 400 million Coca-Cola shares. That position ended in 2025 worth $27.964 billion and was the fourth-largest position in the Berkshire Hathaway investment portfolio.
With Tuesday's gains, the stock position is now worth $31.340 billion and is the third largest stock in the Berkshire Hathaway investment portfolio, according to CNBC.
The Coca-Cola position, which was a key bet by Buffett, is up $3.376 billion since the end of 2025, giving Buffett and the Berkshire Hathaway more reasons to smile about the investment.
Another reason to smile is the quarterly dividend. Berkshire Hathaway currently collects $212 million in dividends each quarter, totaling $848 million per year.
While Buffett is no longer the company’s CEO, new CEO Greg Abel has labeled the Coca-Cola position as one of the investment portfolio's core holdings.
“Apple, American Express, Coca-Cola, and Moody’s – businesses we understand well, have a high regard for their leaders, and expect will compound over decades,” Abel said, naming core holdings.
The 1988 bet has paid off over the decades for Buffett and he now leaves the big bet in the hands of the rest of the Berkshire Hathaway team.
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