As volatility continues to grow among major technology stocks, particularly in the semiconductor sector, Warren Buffett's 38-year-old investment in Coca-Cola has hit an all-time high, drawing intense interest from investors.
CNBC recently reported that Coca-Cola raised its full-year earnings outlook along with its second-quarter financial results.
Coca-Cola's second-quarter revenue reached $13.38 billion, beating the estimated $13.16 billion, while adjusted earnings per share came in at 97 cents, surpassing the market expectation of 93 cents.
Driven by these results, Coca-Cola's stock surged, briefly breaking past $90 to set a new all-time high before closing up 5.0% from the previous trading session at $88.27.
Amid growing uncertainties driven by geopolitical tensions in the Middle East following recent conflicts between the United States and Iran, as well as concerns over an "AI peak," Coca-Cola's upward momentum as a premier defensive stock has brought Warren Buffett's long-term investment strategy back into the spotlight.
Buffett began purchasing Coca-Cola stock in 1988, eventually investing $1.3 billion through Berkshire Hathaway to buy approximately 400 million shares.
Berkshire Hathaway holds a 9.3% stake in Coca-Cola, valued at $35.3 billion, which translates to roughly 50.6 trillion won.
Since then, Buffett has maintained his stake for over 30 years without buying additional shares or selling any.
In his 1988 shareholder letter, Buffett wrote, "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever."
Coca-Cola's performance, backed by steady earnings and dividends, is drawing attention as a testament to the long-term investment philosophy Buffett has long championed.
(Reported by Kim Taewon | Video by Chang Yu-jin | Graphics by Yook Do-hyun | Produced by SBS Digital News)
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