Buffett's $1.3 Billion Bet on Coca-Cola Pays Off in Spades

Warren Buffett's $1.3 billion investment in Coca-Cola has grown to nearly $35 billion, yielding an astonishing 65% return on Berkshire Hathaway's original cost basis.

Buffett started buying Coca-Cola stock in 1988 and has never sold a single share, accumulating about $1.3 billion worth by the early 1990s.

The investment now accounts for nearly 10% of Berkshire's portfolio and is its third-largest holding, with Buffett's company owning over 400 million shares - roughly 9.3% of Coca-Cola's outstanding shares.

Coca-Cola's dividend has increased every year since Buffett began buying shares, paying out $8.8 billion in dividends last year alone, and more than $100 billion since 2010.

The beverage company currently pays $2.12 per share annually, up 4% from the prior-year payout, with Berkshire Hathaway receiving over $848 million each year in dividend income.