Buffett's Billion-Dollar Bet on Coca-Cola Bears Fruit

Warren Buffett recently stepped down as chairman of Berkshire Hathaway (BRKB) and (BRKA), but his legacy lives on in one of his most successful investments - Coca-Cola.

Buffett started buying Coca-Cola stock in 1988, accumulating about $1.3 billion in shares by the early 1990s. To date, that investment is worth a staggering $34.7 billion, representing Berkshire's third-largest holding and accounting for 10% of its portfolio.

The beverage giant pays out $8.8 billion in dividends annually, with Berkshire Hathaway receiving $212 million each quarter and $848 million each year - an impressive 65% yield on Berkshire's original cost basis of $1.3 billion.