Tesla CEO Elon Musk is no stranger to eye-popping sums of money. After all, he currently holds the title of the world's wealthiest person with a staggering net worth of $285 billion.
But even for Musk, some financial figures are enough to raise an eyebrow.
Back in 2023, reports surfaced that Berkshire Hathaway, the investment empire of legendary investor Warren Buffett, earned $704 million in dividends from its Coca-Cola (KO) holdings in one year. Upon hearing the news, Musk couldn't resist commenting on X, "Berkshire Hathaway high on Coke."
That figure was calculated based on Berkshire's 400 million shares in Coca-Cola and the 44 cents per share that Coca-Cola paid out in quarterly dividends in 2022.
Fast forward to today, and that dividend payout has climbed even higher. According to Berkshire's latest 13F filing, the company still holds 400 million shares in Coca-Cola.
With Coca-Cola raising its quarterly dividend to 48.5 cents per share in 2024, Berkshire now stands to collect an impressive $776 million in dividend income this year alone.
Buffett's Coca-Cola investment has become a remarkable source of passive income -- and there are ways for you to build your own. Here are three strategies to get started on your path to generating passive income.
Investing in the stock market has never been more accessible, allowing everyday investors to create passive income streams through dividend-paying stocks -- just like Warren Buffett.
Companies that consistently pay dividends enable investors to earn income without having to sell their shares. High-quality companies like Coca-Cola can even increase these dividends over time, amplifying the income stream.
There are companies that consistently pay out dividends to shareholders, allowing investors to earn income regularly without selling their shares. And with high-quality companies like Coca-Cola, that income stream can also increase over time.
Buffett highlighted the power of this approach in his 2022 letter to shareholders, where he wrote, "The cash dividend we received from Coke in 1994 was $75 million. By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays."