The Coca-Cola Company (NYSE:KO) is among the best Warren Buffett stocks.
A close-up of a bottle of Coca-Cola, showing its iconic branding, from the factory shelves.
The Coca-Cola Company (NYSE:KO) remains one of Warren Buffett’s longest-held positions, with the billionaire adding the stock to his portfolio back in 1988. Warren Buffett, a longtime advocate of Coca-Cola, once joked, “I’m one-quarter Coca-Cola,” reflecting his love for the brand.
As of Q4 2010, Warren Buffett held 400 million shares worth $13.15 billion, making the stock Buffett’s largest holding. Over the years, the billionaire’s investment has yielded significant returns. As of Q4 2025, Berkshire maintains that investment, which now translates into a $27.96 billion stake.
Meanwhile, The Coca-Cola Company (NYSE:KO) also has strong hedge fund backing, with 87 out of 1,041 hedge funds remaining bullish on the stock. The combined hedge fund stake in the stock totals $33.54 billion as of Q4 2025.
The bullish case for The Coca-Cola Company (NYSE:KO) is grounded in durable cash returns, brand breadth, and a business model that management says remains positioned for continued growth. Roughly 80% of covering analysts rate the stock bullish as of April 20, 2026, with the consensus price target implying 13.23% upside.
Jim Cramer’s commentary reinforces that view from multiple angles.
In November 2025, Jim Cramer identified The Coca-Cola Company (NYSE:KO) as one of his top dividend picks, underscoring its income appeal. Next, in early February, he noted that the company is less exposed to GLP-1-related pressures than PepsiCo due to its limited snack business.
The dividend case also improved materially with The Coca-Cola Company (NYSE:KO) announcing a 3.9% increase for 2026, lifting the quarterly payout to $0.53 from $0.51. This marks the company’s 64th consecutive year of dividend growth, further reinforcing its status as a “Dividend King.”
Against this backdrop, Carillon Eagle Growth & Income, a large-cap value mutual fund, noted that the third-quarter weakness was driven by softer volume trends and weaker beverage industry sentiment, even as pricing helped the company deliver results above expectations.
In response, management’s Q4 2025 call indicated that these pressures did not undermine the broader thesis.
Former CEO Quincey said The Coca-Cola Company (NYSE:KO) added 12 billion-dollar brands over the past decade, bringing the total to 32, with 75% coming from outside sparkling soft drinks. CEO Henrique Braun added that the company achieved value share gains for a 19th consecutive quarter, exited 2025 with improving fourth-quarter volume momentum, and still sees a long runway for growth. Additionally, CFO John Murphy noted that fourth-quarter organic revenue increased 5%, EPS reached $0.58, free cash flow totaled $11.4 billion, and 2026 guidance calls for 4% to 5% organic revenue growth.
The Coca-Cola Company (NYSE:KO) is a beverage company that manufactures and sells various nonalcoholic beverages in the US and internationally. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, comprising restaurants and convenience stores.
While we acknowledge the risk and potential of KO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KO and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center