Warren Buffett letter
Every year many people wait for the annual report of Berkshire Hathaway Company. The annual report will be accompanied by Warren Buffett’s letter to shareholders. In it, Warren Buffett will share his views on various matters including business and investment.
18 times profit
In his letter, he said, “In August 1994, we bought 400 million shares in the Coca-Cola Company for seven years. The total cost is $1.3 billion. In 1994, $75 million in dividends came from Coca-Cola.
Dividend from Coca-Cola increased to $704 million in 2022. Growth is sure to happen every year, like birthdays. We expect dividend income to continue to increase
A similar thing happened with American Express. In 1995, we bought American Express for $1.3 billion. Dividend received in this company increased from 41 million dollars to 302 million dollars.
While dividend income rises on the one hand, share price gains are important. By the end of 2022, our stake in Coca-Cola will be worth $25 billion and our stake in American Express will be worth $22 billion,” he said.