20 years ago, I started buying Coca-Cola's (NYSE:KO) stock
through the dividend reinvestment plan (DRIP) as an aspiring young investor on
the notion that if Warren Buffett owned Coca-Cola, so should I.
On top of that, I was a Sprite addict in my youth. As a fan
of Peter Lynch's writings, I wanted to own stock in companies I knew well.
Buffett, of course, is the first to advise against buying a
stock just because he owns it. He bought Coca-Cola in 1988 after the stock
market crash when the valuation was attractive.
Even when the stock was at sky-high levels during the late
1990s, Buffett didn't sell. His favorite holding period is forever.
Buffett holding a stock is not a reason for independent
investors to buy a stock.
Two decades wiser, I've learned that just because someone
famous and accomplished owns a stock, it doesn't guarantee returns. Coca-Cola
has been a positive investment over the past 20 years, but it far
underperformed the S&P 500 index.
I've participated in the Coca-Cola DRIP for 20 years now. In
this article, I'll share the performance of my personal investment in Coca-Cola
from April 1st, 1997, to the latest dividend received on April 3rd, 2017.
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