Buffett's $10,000 Coke Bet Grew to $933,432.27 in Nearly Four Decades
Warren Buffett's famous 1988 bet on Coca-Cola (NYSE:KO) is a story of patience and perseverance. The billionaire investor wagered $10,000 on KO, which grew to $933,432.27 over nearly four decades with dividends reinvested. In contrast, his hypothetical bet on PepsiCo (NASDAQ:PEP) returned just $634,211.15.
Coke's worst drawdown was 55%, lasting nearly five years from July 1998 to March 2003. Buffett didn't sell during this period, demonstrating the importance of holding onto investments through tough times. On the other hand, Pepsi's worst drop was 40% from January 2008 to March 2009.
The numbers tell a story of Coca-Cola's resilience and growth. From December 31, 1987 to September 17, 2026, KO delivered an annualized return of 12.43%, while PEP returned 11.31%. Coke trades just 4% off its all-time high, whereas Pepsi is 23% below its May 2023 peak.