Warren Buffett, the 93-year-old billionaire and CEO of Berkshire Hathaway Inc., is as famous for his less-than-healthy dietary choices as he is for his investment success. He’s known for drinking five cans of Coca-Cola each day, which he says makes up about 25% of his daily calorie intake, according to a 2015 Fortune interview.
Buffett’s investment strategy often involves buying into brands he enjoys, leading to stakes in See’s Candies, Dairy Queen, Apple and Coca-Cola, with his investment in the beverage giant at $23 billion in value. Buffett’s preference for Coca-Cola came later in life; for five decades, he was a dedicated Pepsi drinker.
The backstory of Buffett’s switch was detailed in the book “The Deals of Warren Buffett Volume 2: The Making of a Billionaire.” Don Keough, who lived across the street from Buffett in Omaha, Nebraska, played a crucial role in this transition.
Back in 1960, Buffett approached Keough with a business proposition, asking for a $10,000 investment in his new partnership. Keough, hesitant because of Buffett’s non-traditional employment at the time, passed on the opportunity, later recounting to Michael Eisner, “I didn’t have it, but I could’ve borrowed it 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?” This hesitance resulted in a missed chance to be part of what could have been a $93 million investment by 2018, according to the book.
After Coca-Cola acquired Keough’s company in 1964, his career flourished, eventually becoming president and COO.
In 1985, recognizing Buffett’s preference for Pepsi, particularly Pepsi-Cola Cherry, Keough took a pivotal step. He sent Buffett samples of Cherry Coke, enticingly referred to as the “nectar of the gods.” This act not only swayed Buffett’s soft drink allegiance but also cemented Cherry Coke as the official beverage of the Berkshire Hathaway annual meetings.
Just a year later, in 1986, Buffett declared: “After 48 years of allegiance to another soft drink, your chairman, in an unprecedented display of behavioral flexibility, has converted to the new Cherry Coke. Henceforth, it will be the official drink of the Berkshire Hathaway annual meeting.”
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Buffett’s subsequent investment in Coca-Cola, which began with purchasing $1.3 billion worth of its stock between 1988 and 1994, was influenced by both a personal liking for the product and the company’s strong fundamentals. Berkshire Hathaway now owns 400 million shares of Coca-Cola stock, equal to around 8% of the company.
This story exemplifies how personal experiences and relationships can impact significant investment decisions. Buffett’s dietary habits and investment choices reveal a man who values personal satisfaction and financial wisdom, blending the two in a way that has contributed to his long-term success.
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Warren Buffett | Photo by Fortune Live Media on Flickr
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This article Warren Buffett Drinks 5 Cans Of Coke Per Day At 93 Years Old — But He Was A Dedicated Pepsi Drinker For 50 Years Before His Neighbor Convinced Him To Switch To The ‘Nectar Of The Gods’ And Invest Billions originally appeared on Benzinga.com
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Source: finance.yahoo.com