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The Thesis
Buffett recognized Coca-Cola as the world's strongest brand with unmatched pricing power, bought after the 1987 crash when the stock was temporarily depressed.
The Story
Warren Buffett began purchasing Coca-Cola shares in 1988, eventually investing $1.3 billion — roughly one-third of Berkshire Hathaway's book value at the time. It was an enormous bet on a single company. Buffett saw what others missed in plain sight: Coca-Cola sold a product that cost pennies to make, was consumed 1.6 billion times per day worldwide, and had a brand so powerful it transcended cultures, languages, and generations. The 1987 market crash had depressed the stock to attractive levels.
What makes this trade legendary isn't just the entry — it's the hold. Buffett never sold a single share. That $1.3 billion investment now generates over $700 million per year in dividends alone, meaning Berkshire earns back more than half its original investment every single year. The total position has grown to over $25 billion. Buffett later called it one of the best decisions he ever made, and it perfectly embodies his philosophy: buy wonderful businesses at fair prices, then let compounding do the work for decades.
Key Insight
The greatest trades aren't just about buying right — they're about holding right.
“If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes.”
Warren Buffett
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See how Glen Bradford applies these principles to his own investing. Long Fannie Mae & Freddie Mac junior preferred — conviction meets patience.