the dividend income alone received from Coca-Cola, Amex, and Moody’s is doubling Berkshire Hathaway’s initial investment in these stocks every 21 months (for Coca-Cola), 27 months (for Amex), and 30 months (for Moody’s).
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from google
KO$) 30 years ago (circa 1995) would be worth approximately $9,000 to $9,030 today, assuming dividends were reinvested, with shares alone accounting for roughly $4,270 and dividends making up the rest. While solid, this underperforms the S&P 500, which would have turned $1,000 into roughly $20,000 over the same period.
intercst
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There has been a lot of speculation on the “other” Berkshire board why Buffett has held onto Coke even after years of under performance and little upside.
Best explanation is that he can redeploy the dividends at higher rates of return.
As intercst pointed out the KO returns have been solid. It is a low Beta stock. A good stock for diversification. Ballast for the sailing ship.
A decent companion to BYDDY:
And Apple:
At one time Apple was 40% of the Berkshire Hathaway portfolio. Now it is a more sedate ~20%.
One doesn’t always have to swing for the fences. Solid singles & doubles add to the score. Overall Warren has done fine for his shareholders.
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