Warren Buffett Backed This Consumer Brand for 38 Years. Here's Why Greg Abel Will Keep Holding.
2026-07-22 09:05
•Patrick Sanders •The Motley Fool
•••••• ••••• Axe Capital view
What Buffett’s Coke Bet Means for South African Investors
Berkshire Hathaway’s decades-long Coca-Cola stake highlights the power of steady dividend growth, a lesson for JSE investors.
Berkshire Hathaway’s 38-year hold on Coca-Cola shows that patience pays off, especially with companies that grow dividends consistently. Coca-Cola delivers a neat 2.6% yield and has increased dividends for 65 years straight. For South African investors, the takeaway is clear: look for businesses with reliable cash flow and a focus on rewarding shareholders over time. On the JSE, this mindset applies well to companies like British American Tobacco and Naspers, which have solid dividend track records and global reach. Meanwhile, the rand’s fluctuations against the dollar add currency risk when investing in shares with extensive overseas operations, so consider the USD/ZAR rate as part of your risk assessment. If Greg Abel laps up Buffett’s approach and keeps the discipline, it confirms that strong consumer brands rooted in resilient markets remain valuable. However, consumer staples can face threats from changing habits or rising costs, which may pressure margins and dividends. this is just my opinion and not financial advice
I’d buy and hold dividend growers like Naspers and British American Tobacco, trimming if rand weakness or inflation spikes hurt earnings. Watch USD/ZAR to time exposure; a weaker rand makes offshore revenue less valuable locally.
- Naspers
- British American Tobacco
- USD/ZAR
- currency volatility erodes offshore earnings
- shifts in consumer preferences reduce dividend growth
7/10
Berkshire Hathaway's 38-year investment in Coca-Cola continues to be exceptionally lucrative, generating $816 million in annual dividends on a $1.299 billion cost basis. With a 2.6% dividend yield and 65 consecutive years of dividend increases, the investment returns over 60% of its original cost annually, making it an easy hold for new CEO Greg Abel.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Patrick Sanders
Categories: Rates, Equities, Earnings, Capital Returns, Consumer, Retail
Tickers: KO, BRK.A, BRK.B, AXP, KHC
Sentiment: Positive - Exceptional dividend yield of 2.6%, 65 consecutive years of dividend increases (Dividend King status), strong global revenue growth (12% in Q1), diversified product portfolio, and generates $816 million annually for Berkshire on minimal cost basis. Demonstrates shrewd long-term investment strategy with highly profitable holdings. The Coca-Cola investment alone provides substantial passive income, validating Buffett's investment philosophy that will continue under Abel's leadership.
Keywords: Coca-Cola, Berkshire Hathaway, dividend growth, Warren Buffett, Greg Abel, long-term investing, consumer brands
Insights:
- KO: Positive: Exceptional dividend yield of 2.6%, 65 consecutive years of dividend increases (Dividend King status), strong global revenue growth (12% in Q1), diversified product portfolio, and generates $816 million annually for Berkshire on minimal cost basis.
- BRK.A: Positive: Demonstrates shrewd long-term investment strategy with highly profitable holdings. The Coca-Cola investment alone provides substantial passive income, validating Buffett's investment philosophy that will continue under Abel's leadership.
- BRK.B: Positive: Demonstrates shrewd long-term investment strategy with highly profitable holdings. The Coca-Cola investment alone provides substantial passive income, validating Buffett's investment philosophy that will continue under Abel's leadership.