Buffett's Bet on Coke Pays Off Big as He Leaves Behind Legacy

Warren Buffett's long-term bet on Coca-Cola has paid off in spectacular fashion. Since his famous 1988 investment, the beverage giant's stock has skyrocketed by a staggering 9,234%.

This outperforms its main competitor, PepsiCo, which returned 6,242%. While Coca-Cola's worst drawdown was a painful 55.29%, lasting nearly five years from 1998 to 2003, Buffett remained steadfast and did not sell.

Interestingly, for several years at a time, Pepsi appeared to be the better choice, with returns outpacing Coca-Cola in 2000 and 2014. However, Coca-Cola's recovery has been nothing short of remarkable, with rolling returns through September 2026 showing a lopsided advantage.

As Buffett steps down as chairman of Berkshire Hathaway, he is leaving behind a legacy that includes his unyielding commitment to Coca-Cola. With its dividend yield sitting at 4.22%, Pepsi's higher-yielding status has done little to stem the tide of its underperformance.