Warren Buffett’s 10 Longest-Held Stocks

1. The Coca-Cola Company (NYSE:KO)

Warren Buffett’s First Major Purchase: 1988

Berkshire Hathaway’s stake in Q3 2024: $28.74 billion

Founded in 1892, The Coca-Cola Company (NYSE:KO) is a global leader in the beverage industry, best known for its iconic Coca-Cola drink. Beyond its flagship product, the company is heavily involved in the production, distribution, and marketing of a wide variety of non-alcoholic beverages, including concentrates, syrups, and, more recently, alcoholic drinks. Warren Buffett, a longtime advocate of Coca-Cola, once joked, “I’m one-quarter Coca-Cola.” underscoring his love for the brand. Moreover, the brand is also tied to his massive investment in the company. As of Q3 2024, Berkshire Hathaway holds 400 million Coca-Cola shares, valued at more than $28.74 billion, making up approximately 10.79% of the fund’s portfolio.

In its Q3 2024 earnings, The Coca-Cola Company (NYSE:KO) reported mixed results. While volume declined by 1%, and the quarter started slow in July, the company still achieved 9% organic revenue growth and a 5% increase in comparable earnings per share, reaching $0.77. Additionally, The Coca-Cola Company (NYSE:KO) made a $6 billion tax deposit to the IRS, related to an ongoing dispute. The company revised its 2024 outlook, forecasting around 10% organic revenue growth and 14% to 15% EPS growth, despite facing currency headwinds.

Additionally, The Coca-Cola Company (NYSE:KO) has consistently increased its dividends for over 60 years, earning its place among the elite Dividend Kings group. As of November 22, the company offers a dividend yield of 3.04%.

On October 23, Morgan Stanley lowered its price target for The Coca-Cola Company (NYSE:KO) to $76 from $78 but maintained its Overweight rating. The firm noted Coca-Cola’s strong third-quarter performance and expects the company’s organic sales growth to outpace competitors as the broader industry’s pricing power diminishes.

While we acknowledge the potential of KO, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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