Why Warren Buffett Loves Coca-Cola Stock

Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) owns 400 million shares of Coca-Cola (NYSE: KO), which gives it a 9.2% stake in the beverage company. Coca-Cola now accounts for 7.9% of Berkshire's portfolio, and it's the diversified holding company's third-largest investment after Apple and Bank of America.

Buffett, who claims to drink at least five 12-ounce cans of Coke every day, initiated Berkshire's position in the company back in 1988. The stock has rallied 2,560% since the beginning of 1988, and it's generated a total return of 5,810% after factoring in reinvested dividends. During that same period, the S&P 500 generated a total return of 1,450%.

Let's review the four main reasons Warren Buffett fell in love with Coca-Cola, and see if it's still a sparkling investment for long-term investors.

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Source Fool.com