Key Takeaways
- • Bill Ackman said on the Equity Mates Investing podcast (released Oct. 28) that Warren Buffett told him "I haven't had water in 48 years" during a dinner at Ackman's home; the timing of the dinner and the claim's literal accuracy remain unverified.
- • Berkshire Hathaway owns about 400 million Coca-Cola shares, roughly 9% of the company, bought for about $1.3 billion, now worth roughly $37.6 billion at the Oct. 30 close of $94.08.
- • Coca-Cola's annual dividend of $2.12 per share yields Berkshire about $848 million a year, roughly 65% of its original investment returned in cash annually.
- • Coca-Cola reported Q3 revenue of $13.4 billion (up 7%) and comparable EPS of 91 cents versus 88 cents expected; the stock trades near 28 times trailing earnings after a roughly 37% gain in 2026.
- • Greg Abel, CEO since the start of 2026, named Coca-Cola among four holdings Berkshire expects to "compound over decades," anticipating "limited activity" in them.
Summary
Bill Ackman, founder and CEO of Pershing Square, recounted on the Equity Mates Investing podcast released Oct. 28 that he once hosted Warren Buffett for dinner and offered him still or sparkling water alongside Cherry Coke. Buffett declined and asked for a Coke, and when Ackman asked whether he drank water, Buffett replied, "Bill, I haven't had water in 48 years." Ackman did not specify when the dinner occurred, and Buffett, 96, has not commented publicly. Buffett's soda habit is well documented; he told CNBC in 2019 that he drinks about five 12-ounce Cokes a day. The 48-year figure also matches a 1985 shareholder letter in which Buffett described switching to Cherry Coke after "48 years of allegiance to another soft drink." Ackman has previously criticized Berkshire's Coca-Cola holding, a position Coca-Cola called "irresponsible" in 2015.
The financial stakes are substantial. Berkshire began buying Coca-Cola stock in 1988 and completed its stake in the mid-1990s, investing about $1.3 billion for roughly 9% of the company. At the Oct. 30 close of $94.08, the position is worth about $37.6 billion. Coca-Cola raised its quarterly dividend to 53 cents a share on Feb. 19, its 64th consecutive annual increase, implying about $848 million in annual dividends to Berkshire. Buffett noted in his 2022 letter that the dividend was $75 million in 1994 and had grown to $704 million by 2022.
Coca-Cola shares closed at a record $95.34 on Oct. 22 and are up about 37% in 2026. On Oct. 27 the company reported third-quarter revenue of $13.4 billion, up 7% year over year, and comparable EPS of 91 cents, up 11% and ahead of the 88 cents analysts expected. Global unit case volume rose 5%, and the company raised full-year guidance. Water volume grew 8% worldwide, though its water, sports, coffee and tea category declined in North America. At about 28 times trailing earnings, the valuation suggests substantial good news may already be priced in.
Leadership transitions at Berkshire have not altered the Coca-Cola position. Buffett handed the CEO role to Greg Abel at the start of 2026 and stepped down as chairman on Sept. 18, with his son Howard assuming that role. In his first shareholder letter as CEO, Abel named Coca-Cola among four holdings expected to compound over decades. Buffett's history with the brand dates to childhood, and according to Glen Arnold's book on Buffett's deals, Coca-Cola president Don Keough sent Buffett samples of Cherry Coke in 1985.
The financial stakes are substantial. Berkshire began buying Coca-Cola stock in 1988 and completed its stake in the mid-1990s, investing about $1.3 billion for roughly 9% of the company. At the Oct. 30 close of $94.08, the position is worth about $37.6 billion. Coca-Cola raised its quarterly dividend to 53 cents a share on Feb. 19, its 64th consecutive annual increase, implying about $848 million in annual dividends to Berkshire. Buffett noted in his 2022 letter that the dividend was $75 million in 1994 and had grown to $704 million by 2022.
Coca-Cola shares closed at a record $95.34 on Oct. 22 and are up about 37% in 2026. On Oct. 27 the company reported third-quarter revenue of $13.4 billion, up 7% year over year, and comparable EPS of 91 cents, up 11% and ahead of the 88 cents analysts expected. Global unit case volume rose 5%, and the company raised full-year guidance. Water volume grew 8% worldwide, though its water, sports, coffee and tea category declined in North America. At about 28 times trailing earnings, the valuation suggests substantial good news may already be priced in.
Leadership transitions at Berkshire have not altered the Coca-Cola position. Buffett handed the CEO role to Greg Abel at the start of 2026 and stepped down as chairman on Sept. 18, with his son Howard assuming that role. In his first shareholder letter as CEO, Abel named Coca-Cola among four holdings expected to compound over decades. Buffett's history with the brand dates to childhood, and according to Glen Arnold's book on Buffett's deals, Coca-Cola president Don Keough sent Buffett samples of Cherry Coke in 1985.
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