Maybe you're the type of person who enjoys an ice-cold Coca-Cola
The Coca-Cola Company has a long history of being a stable, high-performing stock. Since 1919, it has been a publicly traded company that has attracted investors from all walks of life.
While it's not likely that you were alive in 1919, the story of Coca-Cola and its 11 stock splits can teach you about the power of a buy-and-hold strategy.
Imagine that you purchased one share of Coca-Cola stock on Sept. 5, 1919, the day it began trading. That doesn't sound like a lot, but wait until you see the numbers.
- April 25, 1927: 1-for-1 stock dividend | 2 cumulative shares
- Nov. 15, 2935: 4-for-1 stock split | 8 cumulative shares
- Jan. 22, 1960: 3-for-1 stock split | 24 cumulative shares
- Jan. 1, 1965: 2-for-1 stock split | 48 cumulative shares
- May 5, 1968: 2-for-1 stock split | 96 cumulative shares
- May 9, 1977: 2-for-1 stock split | 192 cumulative shares
- June 16, 1986: 3-for-1 stock split | 576 cumulative shares
- May 1, 1990: 2-for-1 stock split | 1,152 cumulative shares
- May 1, 1992: 2-for-1 stock split | 2,304 cumulative shares
- May 1, 1996: 2-for-1 stock split | 4,608 cumulative shares
- July 27, 2012: 2-for-1 stock split | 9,216 cumulative shares
Without any selling, one share of Coca-Cola purchased at any point before its first split would have turned into 9,216 cumulative shares at the time of its most recent split on July 27, 2012.
If you had that many shares at a current price of roughly $56 per share, your total investment would be worth $516,096. And if that's not enough to get you excited, consider the fact that reinvesting dividends along the way would have you sitting on even more shares.
There's a reason why Berkshire Hathaway Inc.
