Warren Buffett, the 93-year-old billionaire and CEO of Berkshire Hathaway Inc., is renowned not just for his investment prowess but also for his unconventional eating habits. In recent years, he has developed a strong preference for Coca-Cola, having been a devoted Pepsi drinker for five decades prior.
In a 2015 interview with Fortune magazine, Buffett revealed that he consumes five cans of Coca-Cola every day, which constitutes approximately 25% of his daily caloric intake. His investment strategy often revolves around purchasing shares in brands he loves, leading him to own significant stakes in companies like See’s Candies, Dairy Queen, Apple, and Coca-Cola, with his investment in the beverage giant alone amounting to an impressive $23 billion.
But what prompted Buffett’s switch from Pepsi to Coke? Don Keough, a neighbor who lived across the street from Buffett in Omaha, Nebraska, played a crucial role in this change.
In the 1960s, Buffett approached Keough with a business proposal, suggesting he invest $10,000 in a “new partnership.” However, Keough hesitated due to Buffett’s unconventional career path at the time and ultimately passed on the opportunity. He later reflected, “I missed that chance, even though I could have borrowed money from my father. But can you imagine giving $10,000 to a guy who doesn’t get up and go to work in the morning? That seemed like a weird thing to do.” This hesitation cost him a stake in what would become a $93 million investment opportunity in 2018.
After Coca-Cola acquired Keough’s company in 1964, his career skyrocketed, and he eventually became the president and COO of the beverage giant. In 1985, recognizing Buffett’s preference for Pepsi – especially Cherry Pepsi – Keough made a significant move by sending – Buffett a sample of Cherry Coke, affectionately called the “nectar of the gods.” This sample not only swayed Buffett’s loyalty away from Pepsi but also made Cherry Coke the official drink for Berkshire Hathaway’s annual meetings.
By 1986, Buffett announced, “After 48 years of loyalty to another beverage, the chairman of Berkshire Hathaway, exhibiting unprecedented flexibility in eating behavior, has switched to the new Cherry Coke. From now on, this will be the official beverage of Berkshire Hathaway’s annual meeting.”
Buffett’s subsequent investment in Coca-Cola commenced with purchases totaling $1.3 billion between 1988 and 1994, driven by both his personal love for the product and the company’s solid fundamentals. Today, Berkshire Hathaway owns 400 million shares of Coca-Cola, equivalent to about 8% of the company.
This narrative showcases how personal experiences and relationships can profoundly influence important investment decisions. Buffett’s dietary choices and investment strategies highlight his commitment to personal satisfaction and financial wisdom, blending both aspects in a way that has significantly contributed to his enduring success.
