Could that make you a millionaire?

ahsan65@gmail.comJune 7, 2025

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This unique position generates more than $ 800 million in annual income for Berkshire Hathaway.
The demand for this company remains resilient under difficult economic conditions, which investors could appreciate today.
The increase in action in recent memory can provide clues to its potential in the future.
10 actions that we love better than Coca-Cola ›

In addition to the operational activities which he fully has, Berkshire Hathaway Also has a huge stock portfolio of $ 281 billion. Investors pay particular attention to companies here because they could present potential purchasing opportunities.

There is a dominant company that Warren Buffett is undoubtedly a big fan of, as evidenced by his conglomerate with 400 million shares of value currently of $ 29 billion. This unique company represents 10% of the Berkshire portfolio.

Can this Buffett title make you one millionaire one day?

Image source: Getty Images.

The thirst for extinguished buffett is none other than Coca-Cola (Nyse: ko). Berkshire has been holding a position for some time. These 400 million shares are a boon. Because the drinks giant pays a dividend which has increased in 63 consecutive years and which reports 2.86%, Berkshire reports $ 816 million in annualized income. No one will have a problem with this passive money flow which requires no effort.

In total, Coca-Cola spent $ 8.4 billion only for dividends during the year 2024. This is a Gargantuanian sum that only very profitable companies can manage. Over the past three years, Coca-Cola clear beneficiary margin On average 23%, which is superb. I am sure that there is no shortage of companies who want them to have this kind of lower performance.

There is no sugar. Today’s economic environment does not really give investors reasons to be very optimistic. There is an ongoing trade war between the United States and its business partners that make things uncertain. Credit card delinquencies have almost a 10 -year summit. And consumers’ feeling is at its bottom. Understanding the current backdrop could make investors want to add some stability to their wallets.

Here is where Coca-Cola could seem very interesting. It has a lasting competitive advantage in its brand. Being the market leader with more than 200 different brands of drinks that are offered in all corners of the world helps to achieve unrivaled visibility and a consumption spirit. He also helps that Coca-Cola is a master when it comes to marketing and getting his message across, an expression that emphasizes happiness during the consumption of his drinks.

Consequently, the company has historically been able to flex its price power, even in economic scenarios which are not exactly robust. During the first quarter, the volume increased by 2%. But the price and mixture had a positive impact of 5%. Coca-Cola could probably increase its prices indefinitely, within reasonable limits, and not to lose customers thanks to their loyalty to the brand.

It would probably also be true in a recession. Coca-Cola undergoes a relatively stable request. For example, during the great recession, revenues fell slightly in 2009. But he rebounded right away. The market seems to regain the conviction that Coca-Cola could be a safe stock to own. Actions increased by 15% in 2025 (June 4), excluding the dividend.

Each investor wants to generate enormous wealth from their assets. Having a long -term state of mind, while being able to invest early and at frequent intervals, can increase your chances. However, do not bank on a single company that takes you to the promised land.

With Coca-Cola, dividend investors have a lot to excite. This company can generate a stable income far in the future.

For those who want to become a millionaires, however, it is best to look elsewhere. It is not a significant stock Capital appreciation.

The Coca-Cola equity rate has increased by 75% in the last decade. It is nothing to write at home. A key reason is the lack of strong growth prospects. It is a very mature company that operates in a very mature industry, limiting investor yields.

Before buying Coca-Cola actions, consider this:

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Neil Patel has no position in the actions mentioned. The Motley Fool has positions and recommends Berkshire Hathaway. The Motley Fool has a policy of disclosure.

Berkshire Hathaway, led by Warren Buffett, holds 400 million dividend shares at the test of recession: could it make a millionaire? was initially published by the Motley Fool

ahsan65@gmail.comJune 7, 2025

0 0 4 minutes read