Warren Buffett began buying shares of beverage giant Coca-Cola (NYSE: KO) in 1988 through his holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), which now owns more than 400 million shares. That's worth nearly $23 billion at today's price -- nearly a tenth of Coca-Cola's total market cap of nearly $244 billion.

Considering Buffett's success, it's worth checking out why he likes certain stocks. Berkshire Hathaway only owns around 40 stocks, and most of them fit into a specific investing approach that's made Buffett one of the richest people on the planet.

Coca-Cola is the largest beverage company in the world, with $41 billion in trailing 12-month revenue. It has staged a robust comeback from pandemic declines, and sales increased 12% in the 2022 second fiscal quarter (ended July 1) on top of already strong numbers from last year. It's also highly profitable, although earnings per share decreased in the second quarter as a result of supply chain issues, increased costs, and global inflation.

Continue reading

Source Fool.com