Latest news with #BerkshireHathaway
Yahoo
3 hours ago
- Business
- Yahoo
Here's How Much Warren Buffett Pockets Every Time You Buy a Bottle of Coke
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Warren Buffett once joked that a quarter of his body is made up of Coca-Cola because of how much of it he drinks every day. And it's no wonder he loves it so much considering he profits from every bottle, can and fountain pour sold around the world. Thanks to his company's decades-old stake in the soft drink giant, those profits keep rolling in whether the stock price is up, down or flat. Through Berkshire Hathaway, Buffett owns 400 million shares of The Coca-Cola Company (NYSE:KO). The $1.3 billion investment he made between 1988 and 1994 is now worth over $27 billion, and it spits out over three-quarters of a billion dollars a year in dividends alone. But how much does Buffett actually make every time someone buys a Coke? Let's Break It Down In 2024, Coca-Cola sold approximately 33.7 billion unit cases of beverages globally. A unit case represents 24 eight-ounce servings (the size of Coke's classic glass bottle), which adds up to about 808.8 billion servings sold in total last year. According to the company's annual report, trademark Coca-Cola products— Coca-Cola Classic, Diet Coke, Coke Zero Sugar, and other Coke-branded drinks—accounted for 47% of all volume. That means around 15.8 billion unit cases, or roughly 379.2 billion individual 8-ounce servings, were trademark Coke. Coca-Cola generated $47.06 billion in revenue in 2024, with an estimated $22.1 billion (or 47%) of that coming from trademark Coke products. Net income was $10.63 billion, which means an estimated $5 billion in profit came from Coke-branded beverages. And dividends? Coca-Cola paid out a total of $8.36 billion in dividends to shareholders in 2024. If we again assume that ~47% of that came from trademark Coke, that's around $3.93 billion in dividends tied to the company's namesake drink. That boils down to about $0.01036 in dividends per 8 oz serving of Coca-Cola sold. Check Out: Wall Street has been quietly buying up equity in owner-occupied homes, and the strategy is kind of genius. Here's how one company is using it to produce 15%+ annual returns for its investors. So What Does Buffett Get? Berkshire Hathaway received $776 million in Coca-Cola dividends last year. That's nearly 9.3% of all dividends paid by the company, and it means Buffett earns roughly $0.00096 for every 8-ounce serving of Coke sold worldwide. In other words, Buffett makes just under one-tenth of a penny every time someone drinks a Coke. It doesn't sound like much until you multiply it by nearly 400 billion. And keep in mind, Buffett hasn't reinvested in Coca-Cola since the early 1990s. He still owns the same number of shares. But the dividend keeps going up. Coca-Cola raised its dividend earlier this year and is expected to pay out a total of $2.04 per share in dividends in 2025. That increase marks 63 consecutive years of dividend growth, pushing Berkshire's annual yield on its original investment to nearly 63%. This Is What Passive Income Looks Like Buffett's Coca-Cola investment is the textbook example of "money working while you sleep." He bought once, held forever and now collects over $2 million per day in dividends from a single stock. That's the power of income-producing investments. When you own assets that generate consistent cash flow, you don't have to constantly chase gains or time the market. You can find high-yield investments matching your individual goals with this simple 30-second quiz. You'll discover overlooked passive investment ideas with 8%+ yields. Coca-Cola's Still Popping Despite operating in a slow-growth industry, Coca-Cola remains one of the most reliable dividend payers on the market. The company is a member of the exclusive "Dividend Kings" list, companies that have raised their dividends for at least 50 consecutive years. The stock currently trades at around $69, with a forward dividend yield of 2.93%. And Wall Street still sees some upside. This week, JPMorgan raised its price target on Coca-Cola from $77 to $79, signaling confidence in the company's long-term stability. A 2.93% yield might not turn heads next to Buffett's 63%, but back in 1994, when Berkshire finished buying its shares, Coca-Cola's dividend yield was right around the same. The difference is Buffett held on for three decades and let time do the heavy lifting. You might not make a penny every time someone buys a Coke. But with patience and a long-term vision, you can start building income that pays you while you sleep. Don't Miss: See how a $25,000 investment in home equity could outperform stocks in a high-rate economy. Don't Pass Up Solid Growth To Chase Dividends Not every great investment comes with dividends. Some quietly build value in the background, and offer even greater rewards to those who are patient.A perfect example of this is home equity. That's the strategy behind Homeshares and the U.S. Home Equity Fund. Investors gain access to the long-term upside of residential real estate, at an accelerated rate, with significant downside protection built in. It's a modern approach to wealth-building that doesn't depend on cash flow today, but on smart positioning for Shutterstock This article Here's How Much Warren Buffett Pockets Every Time You Buy a Bottle of Coke originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 hours ago
- Business
- Yahoo
Warren Buffett Says His $31,500 House Brings Him More Joy Than 10 Mansions — And He'd Rather Eat A McDonald's Burger Than A $100 Meal
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Warren Buffett has been the richest man on Earth. He runs Berkshire Hathaway, a nearly trillion-dollar powerhouse with major stakes in Apple, Coca-Cola, Geico, and American Express. His personal net worth has floated around the $100 billion mark. If anyone could afford a private jet hangar attached to a marble mansion with voice-activated bidets, it's Buffett. Instead? He still lives in the same modest house he bought in 1958 — for just $31,500. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Located on a quiet corner lot in Omaha, Nebraska, the 6,500-square-foot stucco home isn't exactly small. But by billionaire standards, it's practically quaint. It was built in 1921 and sits just five minutes from Berkshire's headquarters — close enough for Buffett to skip a limo and still make it to work on time. Decades later, he still calls it one of his smartest buys. "It's my third-best investment," Buffett wrote in a 2010 Berkshire letter to shareholders. And unlike most billionaire real estate portfolios, which stretch across time zones and architectural styles, Buffett has never felt the itch to trade up. He just doesn't see the point. "Would 10 homes make me more happy?" he told People magazine in 2017. "Possessions possess you at a point." That's not some catchy slogan. It's how he lives — and eats. "I don't like a $100 meal as well as a hamburger from McDonald's," Buffett added. "That's the way I'm put together. I don't equate the amount I spend with the enjoyment I'm going to get from something." Trending: Invest Where It Hurts — And Help Millions Heal: His entire approach to real estate mirrors his investment philosophy: value first. Early in his marriage, he gave his wife a choice — they could spend their savings on a house or let him invest it. They waited. They bought the house later, when they could afford it without draining their capital. It wasn't about being cheap. It was about being smart. Buffett's house is now estimated to be worth between $1.34 million and $1.5 million — a 4,700% return on paper. But he doesn't care about that either. "I couldn't imagine having a better house," he told BBC in a 2009 interview. Buffett could live anywhere in the world. He chose to stay grounded — literally — in Omaha. No beachfront villas, no ski lodges, no sprawling estates with staff quarters. Just one home. The same one he's loved for over 65 years. And if you're wondering what he's having for dinner tonight? Probably a McDouble. Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." With Point, you can Image: Shutterstock This article Warren Buffett Says His $31,500 House Brings Him More Joy Than 10 Mansions — And He'd Rather Eat A McDonald's Burger Than A $100 Meal originally appeared on
Yahoo
7 hours ago
- Business
- Yahoo
BNSF Tied to Possible CSX Takeover as US Rail Merger Chatter Grows
With one potential railroad merger in the U.S. already being the topic of speculation, another Class I railroad could end up exploring its own takeover that shakes up the landscape of the industry. Just days after a report surfaced that Union Pacific was pursuing an acquisition of Norfolk Southern, two Monday reports indicated BNSF Railway Co. is seeking to acquire a rival railroad, and that it was working with Goldman Sachs to facilitate a deal. More from Sourcing Journal Skechers Secures Legal Win to Move Forward on Acquisition Union Pacific and Norfolk Southern Reportedly Eyeing Merger Li & Fung Acquires U.K.-based Orrsum, Leader in Hosiery, Loungewear and Underwear Semafor and Reuters reported on the BNSF deal, with the latter also indicating that CSX is in talks to bring on its own financial advisors. Analysts have suggested BNSF might bid for the Jacksonville-based rail company as a defensive measure to remain competitive with Union Pacific. Sourcing Journal reached out to BNSF. Goldman Sachs and CSX would not comment. Warren Buffett, the longtime CEO of BNSF's parent conglomerate, Berkshire Hathaway, denied the Goldman connection in an interview with CNBC Tuesday morning. The 94-year-old 'Oracle of Omaha' said no one from Goldman had spoken to him or his successor, Greg Abel. Buffett did not address BNSF's potential takeover interests. Berkshire Hathaway could certainly afford to pay for a railroad on its own without bringing in outside bankers, with the company holding cash and cash equivalents of $347.7 billion as of March 31. A potential acquisition of CSX based on market cap, not counting any premium paid, would cost the firm $65.7 billion. 'Although our official view is that Berkshire is not inherently in favor of a transaction, leadership likely recognizes that the die could soon be cast,' Baird Equity Research analysts said in a note Monday, ahead of Buffett's interview. 'From that perspective, the real risk is not what Berkshire would have to pay to own the company it believes it is best positioned to merge with, it's what it could cost not to. We think Buffett is likely less focused on whether the price is perfect and more concerned with the implications of a long-term strategic loss that affects competitive positioning and franchise value.' On Monday, TD Cowen upgraded both Norfolk Southern and CSX shares to 'buy' from 'hold' on the recent reports 'as likelihood of rail consolidation moves up considerably.' If a UP-Norfolk Southern deal were to occur, it would merge the largest and fourth-largest railroads in the U.S. by market cap and move the companies closer to creating America's only coast-to-coast rail network. Farrukh Bezar, a former senior vice president and chief strategy officer at CSX, told the TD Cowen team Friday that he did not expect an immediate response from BNSF based on the potential deal among its rivals. However, he noted they would likely need an eastern partner if Union Pacific and Norfolk Southern merged. BNSF Railway, headquartered in Fort Worth, Texas, operates a rail network of 32,500 route miles in 28 states and three Canadian provinces. The railroad namely serves the American Midwest, West and South, but covers minimal ground east of the Mississippi River. CSX's network would cover the areas BNSF doesn't reach, operating entirely east of the Mississippi, and covering more than 20,000 route miles across 26 states, Washington, D.C. and two provinces. The last Class I rail merger took place in 2023, when Canadian Pacific acquired Kansas City Southern to form Canadian Pacific Kansas City (CPKC). The CPKC deal formed the first railroad network that spanned the U.S., Mexico and Canada. Goldman Sachs helped broker the CPKC acquisition. 'We believe any transaction would result in the rail industry going from four U.S. Class Is to two (with the acknowledgment of both Canadian players having significant U.S. exposure),' said TD Cowen analyst Jason Seidl, in an analyst note. 'If Union Pacific makes a bid for Norfolk Southern, then BNSF may wait to see how the process evolves (i.e., not make an offer immediately following UNP) before possibly making an offer for CSX.' Any merger between two Class I railroads would be subject to approval from the Surface Transportation Board (STB) and the U.S. Department of Justice. In response to executive orders from President Donald Trump requiring federal agencies to review their policies related to competition and regulatory barriers, the STB unveiled Monday that it would host a series of meetings to discuss updating its regulatory framework. Currently, there are only four board members on the STB. President Trump still needs to appoint a fifth member that would be up for a Senate vote. According to Seidl, the regulatory hurdle would be the biggest challenge for a potential rail merger to be approved. 'It is our view that Union Pacific could have an inclination of who will fill the fifth STB board seat,' Seidl said, noting that the board is currently split between two Republicans and Democrats, which would heighten the risk of a merger being struck down. Union Pacific 'may have a nod from Washington (we don't think UNP would hire bankers if they didn't get some form of acknowledgment from Washington),' said Seidl, who also acknowledged that the railroad likely sees significant revenue and cost synergies, 'both of which are necessary to clear regulatory hurdles.'
CNBC
20 hours ago
- Business
- CNBC
Google CEO: Young people who learn this tactic can become more successful than most—it's crucial to career growth
Google and Alphabet CEO Sundar Pichai has some advice for young professionals: When you see someone in your workplace who's smarter than you are, do everything you can to learn from them. "Try to get yourself in a position where you're working with people who you feel are stretching your abilities. [That] is what helps you grow," Pichai, 53, said on an episode of the "Lex Fridman Podcast," which aired on June 5. Earlier in his own career — he was an engineer at Applied Materials and McKinsey & Co. consultant before joining Google in 2004 — Pichai experienced multiple moments of working "with people who I felt were better than me," he said. He described the feeling of talking to a colleague and having a "Wow!" moment when he realized that their skills and knowledge surpassed his own. "You want that feeling a few times [early in your career]," said Pichai. If you feel daunted by the realization that your skills lag behind those of some colleagues, try to be "open-minded enough" to commit to spending time around those people whose talents exceed your own, Pichai said. Gravitating toward and observing those people can help you learn by absorbing as much of their expertise and work ethic as possible, according to research into the "Positive Spillover" effect by Northwestern University. In the tech industry, just sitting within 25 feet of a high performer at work can boost your own performance by up to 15 percent, Northwestern researchers found in a 2017 study. "Putting yourself in uncomfortable positions" can help you develop new beneficial skills and practices, said Pichai, adding: "I think, often you'll surprise yourself." Pichai isn't the only successful executive to share this advice. Surrounding yourself with smart people who have good values is "enormously important," billionaire investor Warren Buffett told attendees of Berkshire Hathaway's annual shareholder meeting in May. "You are going to have your life progress in the general direction of the people that you work with," said Buffett, Berkshire Hathaway's longtime CEO, adding that "you'll learn all the time" if you surround yourself with impressive people. Buffett has preached that message for more than two decades, noting at Berkshire Hathaway's 2004 shareholder meeting that young people can especially benefit from "[hanging] out with people better than you." When you're less experienced in the workplace, your mindset is likely to be more malleable, helping you learn and adopt positive habits more easily, he observed.
Globe and Mail
a day ago
- Business
- Globe and Mail
Bank of America Is One of the Largest Financial Companies by Market Cap. But Is It a Buy?
Key Points Bank of America is the second largest U.S. bank and the fifth largest financial company by market capitalization. The company just reported strong second-quarter earnings. There could be some positive tailwinds coming for the banking industry. 10 stocks we like better than Bank of America › To say that Bank of America's (NYSE: BAC) progress in the 15 years since the end of the financial crisis has been impressive would be an understatement. The bank went from being one of the most troubled of the major financial institutions to one of the most respected in the industry. In fact, Bank of America is now the second largest U.S. bank stock by market cap. However, Bank of America could still be an attractive business to invest in, especially now. Let's take a quick look at where Bank of America ranks in the overall financial sector, how the business is doing, and why now might be a smart time to buy. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The largest financials companies by market cap The largest financial company in the world is Berkshire Hathaway(NYSE: BRK.A)(NYSE: BRK.B), with a market cap of more than $1 trillion. Many investors don't realize it, but Berkshire is technically an insurance company at heart -- Warren Buffett built its empire using insurance float from subsidiaries like GEICO and others. With that in mind, here's where Bank of America fits among the largest financial companies (the link leads to our up-to-date list) based in the United States by market cap: Company (Symbol) Description Market Capitalization Berkshire Hathaway Conglomerate with insurance focus $1.02 trillion JPMorgan Chase(NYSE: JPM) Bank $809 billion Visa(NYSE: V) Payment processor $677 billion Mastercard(NYSE: MA) Payment processor $502 billion Bank of America Bank $352 billion So, as of this writing, Bank of America is the fifth largest financial sector company by market cap and the second largest bank stock. It's likely it will stay this way for at least a little while, as there's a wide gap between Bank of America and the No. 4 (Visa) as well as with the No. 6, fellow big bank Wells Fargo (NYSE: WFC), which has a $260 billion market cap. How it's going Bank of America, and most other large bank stocks for that matter, just reported second-quarter results. In general, the numbers looked strong, and here are some key highlights: Revenue and EPS grew by 4% and 7% year over year, respectively. Customer deposits grew 5% to $2 trillion. Bank of America has the No. 1 retail deposit market share, and this growth rate was better than most peers. The bank achieved a 10% return on equity (ROE), which is generally considered to be the threshold of a strong ROE. Consumer banking added 175,000 net new checking accounts and consumer investment accounts grew by 13% thanks to strong market performance and inflows of capital. Bank of America has the No. 3 investment banking market share year-to-date. The company is doing arguably the best of the big banks when it comes to leveraging AI. It has 1,400 AI and machine learning patents, and, just to name one example, its "Ask Merrill" and "Ask Private Bank" AI tools get 23 million interactions per year. Bank of America spent $5.3 billion on stock buybacks and increased its dividend by 8%. Net interest yield increased by 3 basis points year over year despite no recent Federal Reserve rate cuts. Bank of America's net charge-off rate improved by four basis points compared with a year ago. I'm paying close attention to numbers like the net interest margin in the persistent high-rate environment, and the bank's NCO rate, which is a great indicator of the financial health of its customers. Is Bank of America a buy? The bottom line is Bank of America is an excellent institution, and its management has done a great job of embracing technology. If rates start to fall later this year as many expect, it could provide a nice tailwind for the stock, and the banking industry as a whole. In fact, there could be several positive tailwinds in the next few years, including a looser regulatory environment, the surge in IPO and M&A activity we're seeing, and potential lower corporate tax rates. With Bank of America shares trading for less than 13 times forward earnings and a historically attractive valuation of less than 1.3 times book value, Bank of America could be an excellent performer over the next few years. Should you invest $1,000 in Bank of America right now? Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bank of America wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Matt Frankel has positions in Bank of America and Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa. The Motley Fool has a disclosure policy.
