Coke (KO) is having a big day, up 3% on decent earnings.
That reaction has got to be a relief for Warren Buffett. Perhaps no investment is more synonymous with Berkshire (BRK-A) than Coca-Cola. In fact, Buffett famously got his start as an investor of sorts buying six-packs of Coke for a quarter then selling them to his friends for a nickel per for a nice 20% return.
Here in 2015 Berkshire is long a cool 400 million shares of Coke. That works out to 9.1% of the company and roughly 14% of Berkshire's public equity holdings.
Today's pop has put more than $500 million in the Oracle of Omaha's coffers. His total stake is now worth more than $17 billion.
But that's not the whole story. Coke is lagging the S&P 500 (^GSPC) over the last one, two and five year periods.
Berkshire Hathaway is dramatically outperforming Coke on almost any time frame as Buffett has expanded into other things.
This is a testament to Buffett's diversification but as Coke has lagged even the Oracle has come under pressure to step in on the world's biggest soda company. With today's price action Coke and Warren have bought themselves some more time before Buffett has to step up in a public way.
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