Everysecondofeveryday,whileWarrenBuffettsleeps,w... from Coca Cola. By the time you finish listening to this sentence, another $26. And another. And another. Now, here is where the math gets almost unbelievable. Remember what Buffett paid for those shares. Approximately 3.25 p e r s h a r e o n a v e r a g e a f t e r a d j u s t i n g f o r s t o c k s p l i t s [ c i t a t i o n : 5 ] . T o d a y , C o c a − C o l a p a y s...
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Everysecondofeveryday,whileWarrenBuffettsleeps,whileheeats,whilehereadshis500pages,hiscompanycollects26 from Coca Cola. By the time you finish listening to this sentence, another $26. And another. And another. Now, here is where the math gets almost unbelievable. Remember what Buffett paid for those shares. Approximately 3.25 p e r s h a r e o n a v e r a g e a f t e r a d j u s t i n g f o r s t o c k s p l i t s [ c i t a t i o n : 5 ] . T o d a y , C o c a − C o l a p a y s 3.25pershareonaverageafteradjustingforstocksplits[citation:5].Today,Coca−Colapays2.04 per share annually in dividends. That means the dividend alone gives Buffett a yield on his original cost of over 60% per year . Let me say that again. For every dollar Buffett invested in Coca Cola in 1988, he is now getting back 60 cents every single year in dividends alone. Not including the stock price appreciation. Not including the $30 billion gain on the shares themselves. Just the dividend check. Every year. 60 cents on the dollar. If you had a savings account that paid you 60% interest annually, you would never work another day in your life. And that is exactly what Buffett built. Not through some complicated financial instrument. Not through high frequency trading. Not through leverage or derivatives or any of the exotic tools that Wall Street loves to sell. He built it by buying a simple business that sells simple products, holding it for decades, and letting the dividends compound.
Everysecondofeveryday,whileWarrenBuffettsleeps,whileheeats,whilehereadshis500pages,hiscompanycollects26 from Coca Cola. By the time you finish listening to this sentence, another $26. And another. And another. Now, here is where the math gets almost unbelievable. Remember what Buffett paid for those shares. Approximately 3.25 p e r s h a r e o n a v e r a g e a f t e r a d j u s t i n g f o r s t o c k s p l i t s [ c i t a t i o n : 5 ] . T o d a y , C o c a − C o l a p a y s...