Fox Business Network anchor Liz Claman tweeted on Friday that Buffett and Munger told Fox, “It would be a mistake for Coca-Cola to get into the marijuana – cannabis business. They have a wholesome image and that would be detrimental to it.”
.BREAKING: @WarrenBuffett and Charlie Munger to FoxBiz: “ It would be a mistake for Coca-Cola to get into the marijuana – cannabis business. They have a wholesome image and that would be detrimental to it.” @FoxBusiness pic.twitter.com/w4O1PQHC3M— Liz Claman (@LizClaman) May 3, 2019
Coca-Cola may not need the advice. In October, its president and CEO James Quincey told Yahoo Finance’s Brian Sozzi that the beverage giant has no plans to enter the cannabis drink space. A month earlier, in September, the company, which had been rumored to be nearing a partnership with Candian company Aurora Cannabis, said it was “closely watching” the space and had not yet decided on whether to get involved.
On Friday, a Coca-Cola spokesperson reiterated that the company is not planning to enter the cannabis space. "Our chairman and CEO, James Quincey, has repeatedly stated we don’t have plans to get into this space," said Scott Leith, senior director, financial communications for Coca-Cola.
Berkshire Hathaway owns 9.4% of Coca-Cola, a stake worth about $19 billion.
Berkshire first bought a major stake of Coca-Cola back in 1988, noting in its annual investor letter that it expected to hold the securities “for a long time.”
“In fact, when we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever,” the company’s 1988 shareholder letter stated.
Buffett, a famous consumer of Cherry Coke, enjoys the drink so much that he allowed the company to put his face on cans for the drink’s China launch in 2017.
Here’s a look at Berkshire’s other investments:
Alexis Keenan is a New York-based reporter for Yahoo Finance. She previously worked for CNN and is a former litigation attorney. Follow on Twitter @alexiskweed.